Overview
- A new Yahoo Finance column predicts Palantir could drop about 80% if its valuation falls back in line with large software peers, framing the latest bear case as a normalization risk rather than an operational stumble.
- Wall Street sent mixed signals, with Mizuho cutting its price target to $185 while keeping an Outperform rating as Morgan Stanley backed continued acceleration in revenue and large-customer adoption.
- Shares are down about 18% this year and trade at a price‑to‑earnings ratio above 231, underscoring how valuation concerns continue to outweigh recent headlines praising the company’s defense technology.
- Palantir’s latest quarter showed strong execution with $1.41 billion in revenue up 70% year over year, earnings of $0.25 per share, a 57% operating margin, and a Rule of 40 score of 127 that blends growth and profitability.
- Analysts also flagged emerging risks, including Anthropic’s shift to usage‑based pricing that could reshape enterprise AI contracts and the lack of a formal FAA modernization award despite growing interest.