There's plenty for bulls and bears to hash out over Palantir Technologies, a maker of data analytics software. The outlook for federal government deals is one issue for PLTR stock. Then, there's growth from new artificial intelligence products to mull for Palantir stock.
Meanwhile, earnings for PLTR stock are due May 5. Ahead of the earnings report, Palantir stock has formed a new cup base.
In Q1, Wall Street analysts project adjusted EPS of 13 cents, up 65% from a year earlier, with revenue climbing 36% to $862.2 million.
Heading into the Q1 Palantir earnings report, UBS analyst Karl Kierstead holds a neutral rating.
"Bottom line, Palantir seems very resilient, with the one key risk being that the company is exposed to federal government deal delays that our checks argue are happening today … Palantir has already hinted that Fed uncertainty could result in more second-half-weighted U.S. government deal awards. Our checks were clear that this is indeed happening but that Palantir is on the right side of a DoD/government spending mix shift (more software/AI, less hardware/equipment)."
Meanwhile, a basic options trading strategy around earnings — using call options — allows investors to buy a stock at a predetermined price without taking a lot of risk.
Amid stock market volatility from President Donald Trump's tariff-based trade policy, Palantir stock has gained 49% in 2025.
Further, PLTR stock hit its all-time intraday high of 125.41 on Feb. 19. Shares have retreated 10% from that high. But PLTR stock trades above its 50-day moving average, a key technical level.
Also, Palantir has outperformed other software stocks. The iShares Expanded Tech-Software Sector ETF, an industry index that includes many big-cap software companies, is down 5% in 2025.
Further, Palantir joined the Nasdaq 100 index in December.
PLTR Stock Fundamentals
Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
The Denver-based company offers three platforms. One is Palantir Gotham, used primarily by government agencies. There's Palantir Metropolis for banks, financial services firms and hedge funds. And Palantir Foundry is used by corporate clients.
Palantir gets about 55% of its revenue from government agencies.
One concern for Palantir stock has been possible Department of Defense budget cuts and exposure to U.S. Army contracts. Recent news for Palantir has been mixed, with one analysts expecting upside from a new U.S. defense contract. Also, Palantir won a new contract with NATO.
Further, Palantir has won a $30 million contract from the U.S. Immigration and Customs Enforcement (ICE) agency as well as a new deal at the Internal Revenue Service, recent reports said.
Meanwhile, one issue has been insider selling by Chief Executive Alex Karp and others.
Also, Palantir stock jumped on its fourth quarter earnings report and 2025 revenue outlook as Karp declared: "A software juggernaut has indeed emerged."
Trump Administration 2.0
Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump's Presidential election win.
Several members of the incoming Trump administration have ties to Palantir, a company co-founded by longtime venture capitalist Peter Thiel. They include David Sacks, tapped as White House artificial intelligence and crypto czar. Tech industry maverick Elon Musk, Sacks and Thiel helped launch PayPal, becoming part of the so-called PayPal Mafia. Musk is a key Trump advisor.
According to a Financial Times report, Palantir is getting a life from a "revolving door" of executives and officials passing between the company and high level government positions in the U.S. and U.K.
One reason for Palantir's momentum could be views that artificial intelligence will play a bigger role in homeland security or defense spending.
Palantir Stock: AI Strategy
Here's a look at Palantir's go-to-market strategy in artificial intelligence. Further, Palantir is among AI stocks to watch.
The company continues to make progress with its "Artificial Intelligence Platform," initially rolled out in early 2023. On March 13, Palantir hosted its sixth artificial intelligence conference for customers, with several new companies taking part.
However, Palantir has not disclosed pricing for AI products. Some analysts say Palantir needs to show more revenue progress with generative AI commercial deployments.
Still, Wall Street analysts now do not expect most software makers to monetize generative AI, or "conversational AI," in a material way until 2026.
Technical Analysis
Meanwhile, Palantir's Relative Strength Rating stands at 99 out of a best-possible 99.
PLTR stock holds an Accumulation/Distribution Rating of B-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3% or below.
Also, as of April 28, Palantir stock has formed a new cup base with an entry point of 125.41, according to MarketSurge. PLTR stock trades about 10% below the buy point.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
