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.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
The New Reality for EntertainmentThe Kiplinger Letter The entertainment industry is shifting as movie and TV companies face fierce competition, fight for attention and cope with artificial intelligence.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
Betting on Super Bowl 2026? New IRS Tax Changes Could Cost YouTaxable Income When Super Bowl LX hype fades, some fans may be surprised to learn that sports betting tax rules have shifted.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market Today
A dismal round of jobs data did little to lift sentiment on Thursday.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
-
How to Get the Fair Value for Your Shares When You Are in the Minority Vote on a Sale of Substantially All Corporate AssetsWhen a sale of substantially all corporate assets is approved by majority vote, shareholders on the losing side of the vote should understand their rights.
-
Dow Leads in Mixed Session on Amgen Earnings: Stock Market TodayThe rest of Wall Street struggled as Advanced Micro Devices earnings caused a chip-stock sell-off.
-
How to Add a Pet Trust to Your Estate Plan: Don't Leave Your Best Friend to ChanceAdding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Want to Avoid Leaving Chaos in Your Wake? Don't Leave Behind an Outdated Estate PlanAn outdated or incomplete estate plan could cause confusion for those handling your affairs at a difficult time. This guide highlights what to update and when.
-
I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial AdviceCan financial advisers who earn commissions on product sales give clients the best advice? For one professional, changing track was the clear choice.
