Palantir (NASDAQ: PLTR) surged 24% on February 4, reaching an all-time high of $106 after posting stronger-than-expected fourth-quarter results and bullish guidance driven by the ongoing artificial intelligence (AI) boom.
With PLTR now targeting $110, traders are closely watching for a potential pullback, which could present an ideal re-entry point.
As of the market close on February 4, Palantir was trading at $103.83, securing a 23% gain in 24 hours and extending its remarkable 344% rally over the past year.
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The stock’s surge has pushed its market capitalization to $236.52 billion, making the mega-cap AI firm more valuable than American Express (NYSE: AXP), which stands at $221.71 billion.
Technical analysis points to the next buying opportunity
In an analysis by TradingShot, the analyst highlighted Palantir’s repeating ‘January price pattern’, which has played out in both 2023 and 2024, delivering 72.50% gains each time. According to the analysis, If this historical pattern repeats, the stock is on track to hit $110 in the near term.
However, past trends suggest that after reaching this level, Palantir has consistently pulled back to the 0.618 Fibonacci retracement zone, now around $80. This key support level could present an optimal buying opportunity before the stock regains momentum for its next bullish leg higher.
Palantir’s record-breaking earnings beat sparks analyst upgrades
Palantir delivered a strong earnings beat, surpassing Wall Street expectations.
The company reported Q4 adjusted earnings per share of $0.14, surpassing analyst projections, alongside $828 million in revenue, marking a significant boost in both its commercial and government sectors.
U.S. commercial revenue soared 64% year-over-year, while U.S. government revenue climbed 45%, highlighting Palantir’s growing influence in enterprise AI adoption and defense contracts.
Looking ahead, Palantir issued bullish guidance for 2025, forecasting Q1 revenue between $858 million and $862 million, well above analyst expectations. For the full year, the company expects revenue between $3.741 billion and $3.757 billion.
Analysts update Palantir stock price target
Several Wall Street firms raised their price targets on Palantir following its latest earnings report, citing the company’s growing dominance in AI-driven software solutions.
Bank of America’s Mariana Perez Mora called Palantir an AI ‘value adder’ and raised the firm’s price target to $125.
Morgan Stanley’s Sanjit Singh upgraded PLTR to ‘Equalweight’ from ‘Underweight’, lifting the target from $60 to $95.
Meanwhile, Wedbush analyst Dan Ives, who dubbed Palantir the ‘Messi of AI,’ raised the price target from $90 to $120, maintaining an ‘Outperform rating’. Ives described Palantir as one of the most transformational tech stocks of the decade, leading the AI arms race with its AIP platform moat unmatched in the industry.
With Palantir’s AI momentum gaining traction, a potential pullback in line with historical trends could present a key buying opportunity before the next rally.
While analysts raise their price targets, valuation concerns remain, keeping Palantir among the most closely watched stocks in the year ahead.
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