‘A Multibagger Potential,’ Says Investor About Palantir Stock

Few stocks in the AI space have captured investor attention quite like Palantir (NASDAQ:PLTR). With strong revenue growth, solid profit margins, and a growing roster of loyal clients, the company has become a force to watch. Its share price has skyrocketed by roughly 472% over the past year, driven by a wave of enthusiasm.

What sets Palantir apart isn’t just performance – it’s the crowd behind the rally. Retail investors now own more than 40% of the stock, a far higher share than seen in tech giants like Microsoft (23%), Nvidia (29%), or Amazon (26%).

That unusual ownership mix hasn’t gone unnoticed. One investor, known by the pseudonym The Alpha Analyst, remarked: “Palantir stands out for its unusually high retail ownership among mega caps, creating both volatility risks and a rerating opportunity as institutions accumulate.”

According to Alpha Analyst, that shift may already be underway. The investor notes that institutional investors were largely sidelined during Palantir’s IPO due to structural limitations, such as the dual-class voting shares favoring CEO Alex Karp. Combined with the stock’s rapid run-up, these factors initially tempered institutional appetite. However, as the company matures and demand for AI-driven platforms continues to climb, Alpha Analyst believes that more institutions will begin building positions, providing a potential second wave of momentum for the stock.

It’s not just this restructuring that could push PLTR shares higher. There are also ample opportunities for Palantir to grow its business: attracting “stickier” government and enterprise clients, capitalizing on its established defense and intelligence capabilities, and expanding its international footprint.

Of course, the valuation question looms large, as the share price has been consistently trending skyward. The Alpha Analyst appreciates these concerns – “it would be good (always is) to be able to buy Palantir at better valuations” – but nevertheless believes that there is no time like the present.

“Given the long-term multibagger potential even at these levels, and the structural strength of the rally, waiting will not be ideal advice,” concludes Alpha Analyst, who obviously rates PLTR a Buy. (To watch The Alpha Analyst’s track record, click here)

Wall Street, while of mixed opinions, is by and large happy to wait. With 3 Buy, 11 Hold, and 4 Sell recommendations, PLTR carries a Hold (i.e., Neutral) consensus rating. Its 12-month average price target of $101.06 implies a downside of ~25% from current levels. (See PLTR stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.