Key Takeaways
- Palantir rose 5% today with no news of its own, as Cloudflare, Snowflake and other AI stocks rebounded from last week’s selloff.
- That selloff came after a quarter in which Palantir’s revenue grew 96%.
- ServiceNow and Adobe, both far cheaper AI software stocks, barely moved, so buyers went for the AI bets.
- Palantir’s drop went further than its business deserved, but its rich multiple will keep it swinging with the AI trade.
Palantir Technologies (PLTR) is up 5% today, and there’s no Palantir news behind it. Stocks are clawing back last week’s AI-driven selloff.
Other AI names are bouncing too: Cloudflare (NET) is up 10% and Snowflake (SNOW) is up 6%. But cheaper AI software stocks like ServiceNow (NOW) and Adobe (ADBE) are close to flat.
Steve Eisman, the investor known for The Big Short, explained the slide on Friday’s episode of The Real Eisman Playbook: “Palantir is a partial AI play and the market has been freaking out about all AI plays.”
A big quarter, then a 10% drop
Palantir’s third-quarter revenue rose 96% to $2.31 billion. But total contract value grew just 6%, and the stock fell. Then Democrats won both chambers of Congress, setting up a fight over the Pentagon’s budget, and Palantir sank 10% on Thursday.
Analysts expect normalized EPS to more than double this year, to $1.70, and reach $3.73 by 2028.
The contract slowdown would have to show up in next year’s revenue before analysts had much reason to cut those estimates.
The buyers went straight for AI
Cloudflare and Snowflake have growth of their own to point to. Cloudflare’s third-quarter revenue, reported Thursday, rose 39%. Snowflake’s product revenue grew 37% in the quarter ended July 31.
The cheaper names got left behind. ServiceNow is up just 1%, even though it raised its 2026 AI contract value target to $1.7 billion last month and traded at 23x forward earnings at Friday’s close. Adobe is down 0.1% at 8.9x, even after its AI-first annual recurring revenue grew more than 150% in its latest quarter.
TIKR tracks 33 analysts on Palantir. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Palantir, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Palantir’s Analyst Ratings
Palantir still trades on the AI mood
Palantir’s multiple has come down a long way.
At Friday’s close, it traded at 70x forward earnings, below its five-year average of 102x and well off the 270x it hit in October 2025. That’s still rich, which is why the stock swings so much harder than the market.
Bottom line: last week’s selloff went further than Palantir’s business deserved. The next test is Palantir’s 2027 guidance, expected in early February. If new contract growth stays near 6%, that guidance could disappoint.
So what is Palantir stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Palantir could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
