Palantir (PLTR) stock continued its downward trend, sliding in early hours on Friday, with investors reacting to rising AI competition fears from Anthropic and renewed bearish commentary from “Big Short” investor Michael Burry.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
AI Competition Fears and Burry’s Warning Weigh on Sentiment
The latest drop comes after Anthropic unveiled new AI tools and its powerful “Mythos” model, which showed strong gains in software engineering tasks. The launch has raised concerns that faster-moving AI players could start eating into demand for platforms like Palantir.
At the same time, Michael Burry added to the pressure, warning that Anthropic may be “eating Palantir’s lunch” by offering a cheaper and more intuitive solution for businesses. His comments have amplified concerns that competition in enterprise AI is heating up faster than expected.
The broader sell-off in software stocks also weighed on sentiment, as investors reassessed how new AI models could disrupt the sector.
Still, not everyone is convinced the threat is real. Top Wedbush analyst Dan Ives pushed back on the bearish view, saying Palantir remains well-positioned at the center of the AI shift, with strong growth in both its U.S. commercial and government businesses. He maintained his Buy rating on the stock with a price target of $230.00, indicating 76% upside from current levels.
What to Watch Next for PLTR Stock
Palantir will report its Q1 FY26 earnings on Monday, May 11, after the market closes. Wall Street analysts expect Palantir to report earnings of $0.28 per share for Q1, up 115% from the year-ago quarter. Meanwhile, analysts project Q1 revenues at $1.54 billion versus $883.9 million in the year-ago quarter.
Looking ahead, Palantir’s upcoming earnings will be important for investor sentiment. Investors will watch for updates on demand, growth in its commercial business, and how the company is handling rising competition in AI.
The results should show whether the recent drop is just a short-term reaction or a sign of more pressure on the stock.
What Is the Price Target for Palantir?
Wall Street consensus currently sits at a Moderate Buy based on 14 Buys, 5 Holds, and 2 Sells. Following the recent volatility, the average PLTR stock price target remains near $194.61, implying an upside potential of roughly 49% from Thursday’s close.
