Thanks to its integration with the U.S. military, Palantir (NASDAQ: PLTR) stock temporarily reversed its previous losses with the onset of the Iran War before suffering another drop in early April.
President Donald Trump, however, created something of a local bottom for PLTR shares when he, on April 10, took to Truth Social to praise the firm’s ‘war fighting capabilities and equipment’ and taking the announcement as an investing recommendation would have temporarily yielded respectable returns.
Specifically, Palantir stock was trading at $128.06 at the time of the social media post and soared 19.18% to $152.62 by April 22. Thus, a $1,000 investment made shortly after the President made his remark about PLTR would have led to a $191.80 profit.
Still, the equity failed to sustain the upward momentum long-term and is, at $107.27 at press time on June 26, not only 29.71% down from the late April highs, but also 16.23% under the April 10 bottom.
Therefore, the initial success of the Trump-encouraged trade would have evaporated, and the $1,000 purchase would have turned into a $837.70 position for a $162.30 loss.
What is next for Palantir stock in 2026?
Elsewhere, Palantir’s recent stock market woes failed to turn Wall Street sour on the software giant. Indeed, institutional experts remain rather confident that PLTR shares will overcome the downtrend in the coming 12 months and rally to $185.35 on average.
A bullish thesis shared by Wedbush analyst Dan Ives earlier in June, for example, argues that investors have yet to appreciate the value of the software giant and that the firm’s deepening footprint in enterprise artificial intelligence (AI) will eventually transform into powerful tailwinds.
Ives’ views were not only accompanied by a highly optimistic $230 price target – for an estimated $114.41 rally from $107.27 at press time – but also echoed by Palantir CEO Alex Karp.
According to Karp, traders are rapidly becoming weary of frontier AI labs that have, so far, failed to truly attempt to solve genuine business problems, unlike his firm.
Should the CEO and the Wall Street analyst be proven correct, capital might end its rotation away from the companies currently most associated with the AI boom and into more established software giants such as Palantir, leading to a PLTR rally later down the line.
Featured image via Shutterstock
