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Palantir Stock Falls 30% — But Here’s Why Top Analyst Calls It the “Best Story” in Software

Tipranks - Tipranks - Fri Apr 17, 9:10AM CDT

Palantir Technologies (PLTR) has hit a rough patch recently, falling nearly 30% from its all-time high of $207.52. With the stock down roughly 26% year-to-date, here is what investors should know about this AI giant ahead of its May 4 earnings.

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While this drop has made some investors nervous, many analysts believe the company’s fundamentals are stronger than ever. In fact, the latest analyst commentary from DA Davidson suggests the main concern isn’t how the business is performing—it’s how much the stock is worth. The firm’s top analyst Gil Luria called Palantir “the best story in all of Software,” noting that only valuation concerns are keeping him on the sidelines, at least for now.

Strong Business, But Valuation Is the Real Debate

Luria recently kept a Neutral rating on Palantir with a $180 price target. Luria clarified that Palantir has a unique “symbiotic” relationship with AI. Instead of competing with big names like OpenAI, Palantir provides the essential guardrails that allow businesses to use AI tools across their entire operation safely.

While most AI tools focus on helping one person do a small task, Palantir connects systems across an entire company to manage data at a massive scale. This technical lead makes Palantir a long-term winner in AI, but Luria believes the stock price already reflects much of that future success.

Cathie Wood “Buys the Dip” in PLTR Stock

While some analysts are waiting for a lower price, and others like Michael Burry are betting against the stock, Cathie Wood is buying the stock. Her firm, ARK Invest, took advantage of the recent weakness by purchasing more than 85,000 shares of Palantir this week, a bet worth over $11 million.

By buying the dip, Wood is signaling that she is focused on the long-term AI opportunity and is not deterred by the current “expensive” valuation.

Countdown to May 4 Earnings

The next big test for Palantir is its Q1 2026 earnings report on Monday, May 4. This update will be a major catalyst for the stock, and investors will be watching two key areas:

Revenue Growth: Can Palantir maintain its massive growth in U.S. commercial business?
Profitability: Is the company continuing to improve its bottom line?

Luria has already noted that his $180 price target is “under review” pending these results. If Palantir delivers a strong beat, it could force cautious analysts to finally upgrade the stock.

What Is the Price Target for Palantir?

Wall Street consensus currently sits at a Moderate Buy based on 14 Buys, 5 Holds, and 2 Sells. Following the recent volatility, the average PLTR stock price target remains near $194.06, implying an upside potential of roughly 37% from Thursday’s close.

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