Palantir Stock Drops 17% From Its High. Wall Street Has Best- and Worst-Case Scenarios for What Happens Next.

2 hours ago 1

Trevor Jennewine, The Motley Fool

Mon, January 19, 2026 astatine 3:10 AM CST 5 min read

Wall Street analysts are rather divided connected Palantir; the highest people terms implies 50% upside, and the lowest people terms implies 70% downside.
Wall Street bulls reason Palantir banal is worthy owning contempt the valuation due to the fact that the company's enactment successful AI platforms has led to sensational fiscal results.
Wall Street bears reason Palantir banal should beryllium avoided contempt beardown fundamentals due to the fact that it’s 1 of the astir costly bundle stocks successful history.
10 stocks we similar amended than Palantir Technologies ›

Palantir Technologies (NASDAQ: PLTR) banal has precocious 1,880% since the instauration of ChatGPT successful precocious 2022, an lawsuit that jump-started the artificial quality (AI) boom. But the banal has besides fallen 17% from its precocious due to the fact that of valuation concerns and a caller rotation distant from bundle stocks.

Bulls reason the institution provides indispensable analytics and artificial quality tools that assistance commercialized enterprises and authorities agencies marque data-driven decisions. Bears reason shares commercialized astatine an absurdly costly valuation due to the fact that hype (rather than beardown fundamentals) has been the superior catalyst for terms appreciation.

Palantir presently trades astatine $170 per share, and analysts' stock terms forecasts scope from $50 to $255. That implies 70% downside astatine the bearish utmost and 50% upside astatine the bullish extreme. However, the median people terms of $200 per stock suggests the banal volition beforehand 17% successful the adjacent year.

A idiosyncratic points to a machine that shows banal terms charts.

The bull lawsuit for Palantir centers connected its quality to assistance clients crossed the nationalist and backstage sectors physique and deploy artificial quality (AI) solutions that amended decision-making. Forrester Research precocious ranked the institution arsenic a person successful AI decisioning platforms, and the International Data Corp. has besides recognized its enactment successful AI driven source-to-pay platforms, which absorption connected optimizing procurement and proviso concatenation management.

Janice Quek astatine CFRA Research was impressed with Palantir's third-quarter fiscal report. Revenue accrued 62% to $1.1 billion, the ninth consecutive acceleration, driven by beardown income maturation successful its commercialized and authorities businesses. Quek said Palantir achieved a Rule of 40 people of 114% successful the 3rd quarter, which is "unprecedented for a bundle company."

Dan Ives astatine Wedbush Securities selected Palantir arsenic 1 of his apical picks for 2026, calling its bundle the golden modular successful AI usage cases. "With the institution making strategical moves to stay astatine the forefront of AI, we judge that PLTR has a aureate way to go a trillion-dollar marketplace headdress institution and volition turn into its valuation," Ives wrote successful a enactment to clients.