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Palantir (PLTR) shares lost more than 10% on Tuesday, May 6, even though the big data analytics firm reported stellar earnings for its first quarter of 2025.
According to Louie DiPalma, a William Blair analyst, much of the downside in PLTR shares on Tuesday is related to a sequential decline in margins and a year-over-year decline in the company’s international commercial revenue.
However, there still are compelling reasons to keep Palantir stock on your radar.
In fact, the post-earnings decline in the Nasdaq-listed firm is an opportunity for long-term investors to build a position in a quality name at a discount, argued Dan Ives of Wedbush Securities in a research note today.
CEO Alex Karp Remains Bullish on Palantir Stock
Palantir shares appear enticing following the post-earnings pullback primarily because the big data analytics firm not only beat estimates for its Q1 but raised its guidance for the full year as well.
On the earnings call, Alex Karp, the chief executive of Palantir, said he’s “very optimistic” about the future and the company’s U.S. commercial segment is now at a $1 billion run rate, which is “the gold standard for when a company has really broken through.”
PLTR is showcasing solid growth and innovation in the AI-driven data analytics space. Despite today’s weakness, Palantir stock is up some 70% versus its year-to-date low.
Wedbush Sees Upside in PLTR Shares to $140
Valuation remains one of the biggest concerns tied to Palantir stock in 2025.
Still, Dan Ives, a senior Wedbush analyst, recommends buying PLTR shares on the post-earnings decline as the Nasdaq-listed firm is the “Messi of AI.”
In fact, Palantir’s market cap could surpass $1 trillion within the next three years, he predicted in a CNBC interview last night.
Wedbush Securities now sees upside in the AI stock to $140, which signals potential for another 30% gain from here.
Wall Street Disagrees With Ives on Palantir
Wall Street at large does not share Ives’ optimism on Palantir shares.
The consensus rating on PLTR stock currently sits at “Hold” with the mean target of $84 indicating potential downside of more than 20% from current levels.
