Palantir Technologies (NASDAQ: PLTR) continues to lead the stock market, hitting a new all-time high as the equity enjoys the impact of its impressive Q4 2024 earnings report.
With the latest rally, which has seen PLTR stock gain 55% year-to-date and 365% over the past year, analysts at Barchart believe the stock appears to be an ‘unstoppable force of nature.’
As of press time, PLTR was valued at $116.65, up over 5% since the last market close.
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Indeed, Palantir saw further upside, claiming the $100 spot after the company reported blockbuster financials for the last three months of 2024. In the quarter, Palantir reported adjusted earnings per share of $0.14 compared to $0.11 expected and revenue of $828 million, surpassing analysts’ estimates of $776 million.
The American software giant also issued strong guidance, projecting Q1 revenue between $858 million and $862 million and full-year sales of $3.74 billion to $3.76 billion, surpassing the $3.52 billion forecast.
Indeed, this outlook is backed by the company’s venture into artificial intelligence (AI), with notable contracts from government and commercial clients.
Palantir’s latest record high came as investors reacted positively to news of a live AMA with CEO Alex Karp on February 12. The interactive session aims to address community questions and offer insights into the company’s strategy and performance.
Palantir stock price prediction
Regarding the PLTR stock price prediction, Finbold consulted its own AI tool, which foresees a drop in Palantir’s valuation for the short term. The average prediction for February 28 is $103.33, a decline of 11.54% from the current valuation.
According to ChatGPT-4o, investors should anticipate a slight dip in PLTR stock price to $115, while Grok 2 Vision forecasts a steeper drop to $110. On the other hand, ChatGPT-4o Mini predicts a sharp decline to $85, a massive drop of almost 30%.
Indeed, the AI models’ cautionary outlook is also echoed by insights shared by charting platform TrendSpider, which warned that Palantir might have reached an overextension despite the equity showing strong momentum.
In an X post on February 11, TrendSpider noted that Palantir has now surpassed key Fibonacci extension levels, with 1.618 at $69.20 and 2.618 at $108.39, suggesting a technical overextension.
The analysis highlighted that one concerning factor is PLTR’s soaring price-to-earnings (P/E) ratio, which now sits at a staggering 333x. Historically, such high valuations have led to corrections, as seen during previous peaks at 116x, 230x, and 202x.
While momentum remains strong, investors should monitor potential resistance around the $108 to $116 range. If valuation concerns spark profit-taking, a pullback to $69 or even $45 could be on the table.
Wall Street analyst update on PLTR stock price
Meanwhile, Wall Street analysts have issued mixed outlooks on PLTR’s share price. Although a majority view AI as a key catalyst for the stock’s possible growth, one lingering concern is its valuation.
For instance, UBS analyst Karl Keirstead raised his target to $105 from $80, citing 36% revenue growth, a 7.3% beat, and 134% U.S. commercial TCV growth. However, he maintained a ‘Neutral’ stance due to valuation concerns.
Morgan Stanley’s Sanjit Singh upgraded PLTR to Equal-weight from Underweight, lifting the target to $95 from $60, acknowledging sustained 30%+ revenue growth with no near-term downside catalysts.
Raymond James’ Brian Gesuale stayed ‘Market Perform,’ highlighting strong Q4 results and a $1.6 billion FCF outlook for 2025.
Conversely, RBC Capital raised its target to just $40, maintaining an ‘Underperform’ rating due to Palantir’s high valuation concerns. Jefferies’ Brent Thill echoed these questions, lifting his target from $60 to $28 but warning that valuation leaves little upside if growth slows.
Featured image via Shutterstock
