The stock price of American software giant Palantir (NASDAQ: PLTR) is riding high, with the potential to rally further after the company’s Q4 2024 earnings report.
Ahead of the February 3 earnings, PLTR has made a strong recovery after dropping below the $80 mark, ending the latest trading session up 1.56%, valued at $82.49. Over the past week, the equity has gained a whopping 11.68% despite the market downturn triggered by the DeepSeek sell-off.
Palantir earnings expectations
Indeed, Palantir’s venture into artificial intelligence (AI) remains a key driver of the company’s revenue. For the last quarter of 2024, Palantir is expected to report earnings that will beat analysts’ estimates.
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For the quarter ending September 2024, the technology firm exceeded revenue expectations by 2.9%, with $725.5 million in revenue, a 30% year-over-year increase, though it missed billings estimates.
For the last quarter of 2024, analysts forecast a 27.4% year-over-year revenue growth of $775 million, with adjusted earnings of $0.11 per share. While Palantir has missed revenue estimates twice in the past two years, analysts have reaffirmed their expectations, indicating steady performance heading into earnings.
If the stock beats estimates, it could anchor the next rally, likely targeting the $100 mark, which would require a growth of 21% from the current valuation.
It’s worth noting that last year’s surge of over 300% was fueled by heightened demand for its Artificial Intelligence Platform (AIP) and additional contracts in both government and commercial sectors. Including Palantir in the S&P 500 and Nasdaq-100 indexes further boosted its growth trajectory.
Wall Street’s take on PLTR stock price
When looking at Palantir’s path toward $100, several analysts have offered their outlook on the stock’s prospects. Generally, Wall Street remains divided on the potential for Palantir to push higher.
On the one hand, there’s an optimistic outlook, with predictions citing the potential for a breakout amid the AI boom. However, this is tempered by concerns over the stock’s current valuation, which some argue is disconnected from its fundamental growth, especially with a price-to-earnings ratio currently standing at 498.50.
One of the most bullish outlooks for Palantir comes from Dan Ives of Wedbush Securities, who raised his PLTR share price target from $75 to $90, citing confidence in its AI strategy and potential to reshape enterprise software.
With growing market penetration and use cases, Ives sees Palantir as potentially becoming the next Oracle while referring to it as the ‘Messi of AI.’
One of the most consistent bearish voices has come from Jefferies. For instance, on January 30, 2025, the firm’s analyst Brent Thill reaffirmed his “underperform” rating on Palantir despite acknowledging its strong fundamentals.
He forecasted a drop in the stock price over the next 12 months, with a fair valuation closer to $28. Thill argued that Palantir is severely overvalued, trading at 50 times its NTM revenue.
This adds to concerns, as some analysts have warned that signs of buyer exhaustion regarding Palantir stock have emerged.
AI predicts PLTR stock price
To determine how PLTR might trade in the short term, Finbold turned to its AI model to predict the stock’s movement by February 28. The AI models predicted that Palantir stock will rise to $85, up 3.04% from its current price of $82.49.
GPT-4o and GPT-4o Mini highlighted positive momentum and stable macroeconomic conditions, with no signs of a bearish trend. Grok 2 Vision also sees stabilization at $85 due to strong sector momentum and favorable interest rates.
Final thoughts on PLTR stock to $100 after earnings
For Palantir stock to hit $100, it would need a 21% rally from its current price, which seems possible given the recent meteoric rise, potentially boosted by the upcoming earnings report.
However, sustaining this price in the long term would require a favorable macroeconomic environment and a continued bull market.
A lot of growth is already priced in, and the stock can only justify these levels if Palantir maintains its trajectory over the coming years. This is uncertain, and the stock may experience pullbacks along the way.
Featured image via Shutterstock
