The Latest Breaking News from PLTR

These evolving companies could be long-term winners.

Palantir Technologies stock surged 6% after announcing a crucial partnership with Microsoft to boost AI and analytics services for U.S. government agencies, sparking a fresh wave of investor interest and optimism about the company's growth potential.

Despite Palantir's impressive 66% surge this year, Mizuho downgraded the stock to 'Underperform' due to concerns over high valuation and limited earnings visibility. With mixed analyst ratings and the Q2 earnings report approaching, investors are advised to tread carefully and prepare for potential volatility.

Palantir stock could still be cheap here, despite its rise over the past two months ever since releasing its quarterly results. It's projected to make significant free cash flow and FCF margins over the next year.

With the tech landscape increasingly dominated by AI stocks, can Palantir break out in the back of this year?

These two growth stocks appear to be well-positioned to capitalize on the AI wave.

Down about 38% from all-time highs, Palantir trades at a discount, especially if the AI software specialist can grow its earnings at a stellar pace going forward.

Shorting out-of-the-money puts in Palantir stock might be a good income opportunity. It could also be a good buy-in point in PLTR stock. This is based on a higher target price based on its strong FCF.

Palantir Technologies stock is attracting attention with its impressive AI-driven growth, major contracts, and partnerships, but its high valuation and mixed analyst sentiment raise questions about the sustainability of its rally and the likelihood of a significant breakout in the near term.