Palantir Technologies: Wall Street Turns Bullish Amid Brutal Selloff

Palantir Technologies ( (PLTR) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Palantir Technologies has become one of Wall Street’s most hotly debated AI names, as its shares have slumped roughly a quarter from last year’s highs despite blockbuster growth numbers. The company delivered about 70% year-over-year revenue growth to $1.41 billion in Q4 2025, a Rule of 40 score of 127%, and operating margins above 50%, yet valuation fears and broader AI fatigue have driven the stock down more than 20% year-to-date.

The pullback is now drawing in major Wall Street supporters. UBS upgraded Palantir Technologies to Buy with a $180 target after a 35% selloff, calling it a “premier growth story” at the center of AI and data spending and forecasting roughly 70% revenue growth in 2026 with mid‑50% margins. Rosenblatt and other firms have also initiated or upgraded to Buy around $150 targets, while the Street’s average target near $190 implies close to 40–50% upside over the next year.

Bulls argue Palantir Technologies is a unique “N of 1” AI software platform, blending battle‑tested infrastructure with top engineering talent to serve marquee customers like the U.S. DoD, CIA, BP, and Merck, and claim it could generate more incremental free cash flow in 2026 than almost any software peer. They highlight surging U.S. commercial growth of 137%, expanding contract value, and sticky, recurring government and enterprise deals as drivers of double‑digit top‑ and bottom‑line growth for years.

Skeptics counter that even after the correction, Palantir Technologies still trades at more than 100x forward earnings and roughly 70x sales, far richer than other fast‑growing software names or AI leaders like Nvidia. High profile investors warn that the valuation assumes years of near‑perfect execution and leaves little margin for error, flagging concentration risk in U.S. government revenue and the possibility of another 50% downside if sentiment or growth wobbles.

For investors, Palantir Technologies now sits squarely in the high‑risk, high‑reward camp. The business fundamentals look exceptional, with rapid, profitable growth and a strengthening Wall Street consensus that sees the post‑selloff levels as an attractive entry point. At the same time, the stock’s premium valuation and dependence on continued AI and government spending momentum mean any slowdown could trigger another sharp leg lower, making position sizing and time horizon crucial.