Palantir Stock: Why One Analyst Says to Buy the Dip
Palantir stock is continuing to slide Thursday as investors weigh a CEO stock sale and potential defense budget cuts. Here’s what you need to know.


Palantir Technologies (PLTR) stock is continuing to slide Thursday, bringing its week to date decline to more than 16% at last check. Weighing on the shares are CEO Alex Karp's plans to sell nearly 10 million PLTR shares and reports that Defense Secretary Pete Hegseth is calling for budget cuts.
In a filing with the Securities and Exchange Commission (SEC) on Tuesday, Palantir revealed Karp plans to sell up to 9.975 million shares of the company's stock over the next six months via Rule 10b5-1.
As Kiplinger contributor Robert Gorman explains in his piece on "For a Concentrated Stock Position, Ask Your Adviser This," Rule 10b5-1 trading plans "allow directors and officers to sell company stock during predetermined 'open windows' that normally occur outside quarterly earnings announcements or the dissemination of other new information to the public that could cause the underlying stock price to change significantly."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
While Rule 10b5-1 trading plans are common, it can sometimes spook investors when company insiders sell stock, particularly after a big run higher on the price charts. Indeed, Palantir shares have more than quadrupled in the past 12 months.
Adding to the skittishness, Defense Secretary Pete Hegseth reportedly ordered Pentagon and U.S. military leaders to develop plans to cut 8% from the defense budget in each of the next five years, according to The Washington Post, citing a memo it obtained and officials familiar with the matter.
In its fiscal year ending December 31, Palantir generated $1.2 billion in revenue from the U.S. government, representing 63.2% of its $1.9 billion in total revenue.
Is Palantir stock a buy, sell or hold?
Even with Palantir's impressive showing on the price charts, Wall Street is on the sidelines when it comes to the AI stock.
According to S&P Global Market Intelligence, the average analyst target price for PLTR stock is $87.38, representing a discount of more than 11% to current levels. Additionally, the consensus recommendation is a Hold.
But there are bulls to be found. Financial services firm Wedbush, for one, has an Outperform rating (equivalent to a Buy) and a $120 price target.
"Palantir remains one of our top names to own in 2025, and we believe this sell-off represents another opportunity with PLTR generating traction across both federal and commercial for its entire portfolio," says Wedbush analyst Daniel Ives.
Ives adds that "Palantir could be a trillion market cap over the coming years and shaping up to be the next Oracle (ORCL) or Salesforce (CRM) as the AI Revolution plays out." He calls these latest worries "noise" and believes PLTR's AI-driven future is "bright."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Here's Why Walmart Deals are Better Than Amazon Prime Day
With sales for Walmart Deals and Amazon Prime Day running comparable on price, one factor separates them.
-
How to Get Rid of the Things Your Kids Don't Want While Downsizing
Whether moving by necessity or choice, downsizing means deciding what to do with your stuff. Here's what to do if the kids and grandkids don't want it all.
-
Five Things You Can Learn From Jimmy Buffett's Estate Dispute
The dispute over Jimmy Buffett's estate highlights crucial lessons for the rest of us on trust creation, including the importance of co-trustee selection, proactive communication and options for conflict resolution.
-
I'm a Financial Adviser: For True Diversification, Think Beyond the Basic Stock-Bond Portfolio
Amid rising uncertainty and inflation, effective portfolio diversification needs to extend beyond just stocks and bonds to truly manage risk.
-
I'm a Retirement Psychologist: Money Won't Buy You Happiness in Your Life After Work
While financial security is crucial for retirement, the true 'retirement crisis' is often an emotional, psychological and social one. You need a plan beyond just money that includes purpose, structure and social connection.
-
Recent Market Volatility Offers Valuable Lessons for Investors
Stocks will always rise and fall, but strategic investors can benefit through dollar-cost averaging, rebalancing in down markets and taking the long view.
-
Retiring Early? This Strategy Cuts Your Income Tax to Zero
When retiring early, married couples can use this little-known (and legitimate) strategy to take a six-figure income every year — tax-free.
-
Ditch the Golf Shoes: Your Retirement Needs a Side Gig
A side gig in retirement can help combat boredom, loneliness and the threat of inflation eroding your savings. And the earlier you start planning, the better.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet Spot
Converting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.