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Palantir’s stock is anticipated to experience significant fluctuations as the week progresses, especially following the earnings report released on Monday.
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While sales are projected to hit new record highs, this isn’t enough to maintain the stock price gains from last quarter due to ongoing valuation worries.
Palantir Technologies plans to announce its fourth-quarter results after the market closes on Monday, and traders are bracing for potential volatility.
Current option pricing suggests that Palantir (PLTR) could see its stock rise by at least 9% by the week’s end. At its highest, the stock could reach about $158 based on a Friday closing price around $147. On the downside, it might drop to approximately $133, which would push it into negative territory for the year. Notably, the stock hasn’t dipped into the $130 range since July.
Software companies like Palantir have faced a challenging start to the year, as AI investors seem to be focusing more on hardware manufacturers and chip stocks. Palantir’s stock has decreased nearly 30% from its all-time high before its last quarterly earnings report last November.
In 2025, Palantir stock thrived as a software provider, receiving praise from analysts who called it a “best-in-class AI enabler.” However, recent concerns about overvaluation have started to pull the stock down.
The company is expected to report fourth-quarter sales of $1.34 billion, with adjusted earnings per share slated at $0.23. According to estimates from Visible Alpha, both numbers are expected to increase by more than 60% compared to the previous year.
Although the company met expectations in the last quarter, its stock fell in the days following the November report. There are worries that government contractors may be overvalued when stock prices climb. Despite a remarkable 135% rise in 2025, the stock is on a downward trend this year due to concerns that enthusiasm for AI has led to inflated valuations across the industry.
Opinion among analysts on Palantir’s stock is somewhat mixed, with four rating it a “buy” and five assessing it as a “hold,” according to nine analysts monitored by Visible Alpha.
Nevertheless, many analysts believe Palantir’s stock could still rise by about 30%, potentially exceeding its all-time high from November, with an average price target around $189.
