There’s so much hype around Palantir (ticker: PLTR) that we just couldn’t ignore the company. It’s a developer of Big Data and artificial intelligence solutions. In its early days, Palantir worked on contracts for U.S. intelligence agencies. Now, it spans a wide range of industries—from banking to healthcare. Below, we’ll cover the latest stock price as of the last day of winter, revisit the Q4 earnings report, assess PLTR’s prospects and risks, and take a look at the Palantir Stock Forecast 2025: Buy or Sell?
Latest Data as of February 28, 2025
Over the past week (February 24–28), Palantir’s stock has dropped 13%. By the close of trading, the stock had fallen to $85, bringing its market capitalization down to $199 billion. Some analysts view this as a potential correction. Despite the recent decline, Palantir is still up 12–13% year-to-date in 2025.
Why is PLTR going down?
The first reason is CEO Alex Karp’s plan to sell up to $1.2 billion worth of shares. For the market, this signals that top management might be locking in profits and doesn’t expect significant short-term growth.
The second reason is warnings from President Donald Trump’s administration about potential budget cuts in the U.S. Department of Defense. Palantir has several major military contracts, making it vulnerable to reductions in government spending.
The third reason, as previously speculated, is the stock being overheated. There are growing concerns about PLTR’s valuation and its future growth potential.
Palantir (PLTR) Q4 Earnings Report: Buy or Sell?
On the evening of February 3, 2025, Palantir Technologies (PLTR) released its Q4 2024 earnings report, exceeding analyst expectations. Revenue surged 36% year-over-year, reaching $828 million, well above the $776 million consensus estimate. As expected, PLTR shares jumped 22% following the report.
Palantir also provided its 2025 outlook, forecasting Q1 revenue between $858 million and $862 million, significantly higher than analysts’ expectations of $799 million. Additionally, Palantir (PLTR) saw strong growth in the U.S. market, both in the commercial and government sectors. Commercial revenue increased 64% year-over-year. U.S. government contracts grew 45% compared to the previous year. Total revenue for 2024 increased 29%.
Growth Potential: Palantir Stock Forecast 2025
A major part of Palantir’s success comes from its core products: Gotham (for government clients), Foundry (for commercial clients), and Apollo (which ensures continuous software updates). Palantir delivers a comprehensive ecosystem that enables real-time data processing. For corporations, this means optimizing production processes; for government agencies, it means more efficient monitoring and project management.
What sets Palantir (PLTR) apart is its focus on long-term contracts with major government and military customers. The company recently expanded its contract with the U.S. Army to $619 million through 2028. Plus, Palantir is scaling further through cloud services and ready-to-deploy Foundry modules, making PLTR more accessible to mid-sized businesses.
Potential Challenges and Risks
Budget Cuts in the U.S. Palantir is prepared to work with the newly formed Department of Government Efficiency (DOGE) under Elon Musk. Yet, given President Donald Trump’s push for trimming government spending, there’s always the possibility of budget reductions. That’s exactly what was announced last week.
Competition. The U.S. Big Data and AI market is complex. A growing number of startups are entering the scene, and tech giants like IBM, Microsoft, and Oracle all offer their own analytics and cloud solutions.
Market Valuation Complexity. As CNBC notes, analysts find it incredibly hard to determine the upper limit for Palantir’s solutions since use cases span everything from the U.S. military to retail. That leads to target prices from Wall Street often lagging behind actual market dynamics.
Palantir Stock Forecast: Buy or Sell?
According to the latest analyst estimates, the 12-month average price target for Palantir stock is $87.38, based on forecasts from 30 analysts. With the current price at $85, this suggests a potential upside of just 2.5%. As is often the case, analysts’ projections vary widely. Optimistic forecasts suggest a price of $141, while pessimistic estimates go as low as $18 per share.
This reflects the uncertainty surrounding PLTR’s future valuation. Some investors see the company as a long-term leader in AI and data analytics, while others raise concerns about its high valuation and the risk of government budget cuts. These remain key factors influencing the stock’s performance.
Palantir Stock Forecast 2025: Buy or Sell?
Considering the latest news and the Q4 earnings report, the sentiment is mixed. On one hand, the earnings report was fairly optimistic, but on the other, recent developments raise concerns.
Watching Palantir’s stock right now is especially interesting. On the last day of winter, the stock managed to show a slight 0.18% gain. Does this mean it has found a new bottom, or will the decline continue? We’ll find out next week.
At the moment, I don’t own any shares of PLTR. Do I plan to buy? Not yet—the stock still looks overvalued. However, if it drops to $80, it could be worth considering. For now, my stance on PLTR is HOLD/FUTURE BUY.
If you were interested in this article, we recommend reading more in the same format about: Is Nvidia a Good Stock to Buy after Q4 Earnings and Dell Stock Forecast: Is It a Good Buy After Q4
We made an account at X (Twitter). Subscribe so you don’t miss out on the hottest news!
This article is for informational purposes only and does not constitute financial advice. The content reflects the author’s opinion and should not be interpreted as an investment recommendation.
