- Palantir (PLTR) stock increased more than 2% to $86.45 in premarket trading on Wednesday, following a 1.17% rise to $84.40 the previous day, easing some selling pressure from a 30%-plus drop from its $125.41 peak over three weeks.
- William Blair, a longtime PLTR bear, upgraded the ticker to ‘Market Perform’ from ‘Underperform,’ citing valuation adjustments after a significant “DOGE-driven selloff,” though it warns of over 40% downside risk tied to government contract delays.
Palantir (PLTR) is showing signs of life again, with its stock climbing more than 2% to $86.45 in premarket trading on Wednesday, March 05, building on a 1.17% gain the previous day that left it at $84.40. This uptick stands out against a broader market rattled by tariff fears, suggesting something specific is at play. One likely boost comes from William Blair, a firm that’s flipped its stance on Palantir, upgrading it from ‘Underperform’ to ‘Market Perform.’ This shift follows a rough stretch for the company—over the past three weeks, its shares tanked more than 30%, dropping from a high of $125.41 to around $84. The analysts point to a 33% selloff they call “DOGE-driven,” tying it to valuation concerns, but they’re now seeing enough positives to justify the change. It’s not all rosy, though—Blair warns the stock’s valuation remains “frothy,” with over 40% downside risk if government contracts hit delays, especially with a potential government shutdown looming on March 15.
For Palantir, the upgrade from William Blair isn’t about a specific price target—it’s about momentum. The firm notes that if the market swings back to “risk-on mode,” Palantir could climb back toward that $125 peak. But they’re not betting on a straight shot up. Instead, they expect the stock to bounce around over the next year, stuck in a range with plenty of volatility. That makes sense for a company like Palantir, which thrives on big data and AI contracts but often rides the waves of investor sentiment and government spending quirks.
Palantir’s business, rooted in analytics for government and commercial clients, has always been a bit of a rollercoaster. The 2% premarket jump to $86.45 and the 1.17% rise to $84.40 show it’s regaining some footing after losing a third of its value from $125.41. William Blair’s cautious optimism highlights “positive developments,” though they don’t spell out exactly what those are—likely a mix of steady contract wins and market vibes shifting away from panic. Still, the specter of a March 15 shutdown adds a wrinkle; if government funding stalls, Palantir’s reliance on public-sector deals could take a hit. For now, though, the stock’s somewhat defying the gloom that’s dragged others down. Whether Palantir can claw back to $125 or stays volatile between $84 and $90 remains anyone’s guess—but the upgrade’s a signal that the narrative’s shifting, at least for today.
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