That's not to say that extreme valuations can't get more insane, and I might be wrong in the near-term. But I do think that the kind of premium investors are playing for overall revenue growth of around 63% year-over-year this past quarter doesn't make sense. That goes double for those who think that as Palantir gets larger and matures further, this growth rate won't deteriorate further.For those with an eye on fundamentals and are trying to piece together what would need to happen in order for Palantir to ...

One of the most divisive stocks on the market, with some of the most ardent bulls and bears on opposing sides, has to be Palantir (NASDAQ:PLTR). ...

Market Reaction to U.S. Intervention - The market reaction to the U.S. military intervention in Venezuela has been significant, particularly among energy stocks, with notable movements in publicly traded companies [1][2]. Energy Sector Performance - Chevron Corporation (NYSE: CVX) has seen a rise of 7.3%, while Exxon Mobil (NYSE: XOM) increased by 4.5%, ConocoPhillips (NYSE: COP) also rose by 7.3%, and Halliburton Company (NYSE: HAL) surged by 10.3% [7]. - The intervention is expected to benefit U.S. oil companies, especially Chevron, which has a substantial presence in the region [3][4]. Foreign Oil Companies' Performance - Shell (NYSE: SHEL) and BP (NYSE: BP), both foreign companies, experienced a slight decline of 0.7% in premarket trading, indicating investor skepticism about foreign companies profiting from U.S. actions in Venezuela [4][5]. Defense Sector Performance - Defense stocks have shown a cautious response, with companies like Lockheed Martin (NYSE: LMT) up by 1%, RTX (NYSE: RTX) by 0.7%, Northrop Grumman (NYSE: NOC) by 1%, General Dynamics (NYSE: GD) by 1%, and Boeing Company (NYSE: BA) by 0.2% [9]. - The expansion of military operations is generally seen as beneficial for defense companies, although investors are currently taking a cautious approach [8]. Tech Sector Performance - Tech companies with defense contracts, such as Palantir Technologies (NASDAQ: PLTR) which rose by 3.8%, Honeywell International (NASDAQ: HON) up by 0.2%, and L3Harris Technologies (NYSE: LHX) up by 0.7%, are also expected to benefit from increased military operations [10].

Core Viewpoint - Palantir is recognized as a leading AI software company with a significant market valuation, currently at $400 billion, reflecting its strong position in the enterprise AI platform sector [2][5]. Valuation and Analysis - There is a notable divergence in Wall Street's target prices for Palantir, indicating a lack of consensus on its future prospects. The highest target price significantly exceeds the lowest, contrasting sharply with more consistent valuations seen in other tech giants like Microsoft [4]. - Despite a stock price increase of over 120% in the past year, Palantir has not outperformed the S&P 500 index, raising questions about its high forward P/E ratio of over 200 compared to the software sector average of 30.6 [5]. - Analysts highlight that Palantir's impressive revenue growth and profitability metrics, such as a projected revenue of $8.7 billion by FY2027 and an operating margin of 50%, support its leading market position [8]. Revenue and Growth Potential - Palantir's revenue is expected to reach $8.7 billion by FY2027, with a significant increase in net revenue retention rate from 119% in December 2022 to 134% recently, and a rise in U.S. commercial customers from 132 to 530 [8]. - The company is anticipated to achieve a compound annual growth rate (CAGR) of 35% over the next three years to reach a $1 trillion market cap, driven by its AI platform's success in commercial applications [7]. Market Dynamics and Risks - Analysts caution that Palantir's revenue growth rate is projected to slow down from 54% in 2025 to 37% by FY2027, which may challenge the sustainability of its high valuation [9]. - The stock has faced resistance above $190 since August 2025, indicating a potential market correction as investors adjust to a "normalization phase" in growth expectations [11].

Shares of Palantir Technologies Inc. (NASDAQ:PLTR) sold off at the start of the new year, losing 14.05% over past five trading sessions after losing 0.84% the five prior. ...

Core Viewpoint - Veteran investor Louis Navellier warns against the recent "junk rally" in low-quality stocks and advises a shift back to quality stocks with strong earnings growth as the 2026 financial year begins [1][2] Group 1: Market Trends - Navellier highlights a fourth-quarter mean reversion where previously underperforming stocks led the market, which he deems unsustainable [2] - He anticipates a "big flip" in January, where quality companies with accelerating sales and earnings will regain market leadership [2] Group 2: Stock Picks - Navellier's top pick is Nvidia Corp. (NASDAQ: NVDA), expecting a 66.7% increase in sales and a 71% jump in earnings due to new chip sales to China [4] - He is also bullish on Palantir Technologies Inc. (NASDAQ: PLTR), forecasting a 64.1% earnings surge as a leading "AI implementer" for government contracts [4] - Seagate Technology Holdings PLC (NASDAQ: STX) and Celestica Inc. (NYSE: CLS) are highlighted as beneficiaries of the data center boom, with earnings expected to rise 37.6% and 58.1%, respectively [5] Group 3: Economic Outlook - Navellier expresses concern over the broader economy, predicting deflation as the primary story for 2026, citing falling rental costs, declining condo prices, and low energy prices [6] - He argues that the Federal Reserve needs to cut rates by at least 100 basis points to prevent a deeper economic slowdown [6] Group 4: Market Performance - In 2025, the S&P 500 increased by 16.65%, while the Nasdaq Composite and Dow Jones gained 20.54% and 13.38%, respectively [7] - The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 0.24% at $684.82, and the Invesco QQQ Trust ETF (NASDAQ: QQQ) advanced 0.52% to $616.29 in premarket trading [7]

Core Viewpoint - The article discusses the potential for growth in three AI-related stocks—NVIDIA Corp., Micron Technology, Inc., and Palantir Technologies Inc.—due to the "January Effect" and ongoing demand in the technology sector driven by artificial intelligence [2][4]. Group 1: NVIDIA Corp. - NVIDIA is expected to experience strong growth driven by demand for its AI hardware, particularly its next-generation Blackwell chips and cloud GPUs [5]. - The easing of U.S.-China trade tensions, highlighted by the approval of H200 AI chip shipments to select customers in China, is seen as a positive development for NVIDIA [6]. - NVIDIA projects fiscal fourth-quarter 2026 revenues at approximately $65 billion, with a margin of plus or minus 2% [7]. - The company's expected earnings growth rate for the current year is 55.9%, with a Zacks Consensus Estimate for EPS at $4.66, reflecting a 12% year-over-year increase [8]. Group 2: Micron Technology, Inc. - Micron's high-bandwidth memory (HBM) chips are in continuous demand, supporting growth in 2025 and expected to continue this year [9]. - The company anticipates fiscal second-quarter 2026 revenues between $18.3 billion and $19.1 billion, mirroring revenue growth seen during the dot-com bubble [10]. - Micron's projected earnings growth rate for the current year is 278.3%, with a Zacks Consensus Estimate for EPS at $31.36, indicating a 185.9% year-over-year increase [11]. Group 3: Palantir Technologies Inc. - Palantir is positioned for growth due to the increasing adoption of its Artificial Intelligence Platform (AIP) among U.S. government and commercial clients [12]. - The company expects total revenues for 2025 to be between $4.396 billion and $4.400 billion, indicating growth in both client segments [13]. - Palantir's expected earnings growth rate for the current year is 42.5%, with a Zacks Consensus Estimate for EPS at $0.73, reflecting a 52.1% year-over-year increase [14].

Core Insights - The Zacks Equity Research team has highlighted stocks including Amazon.com, Palantir Technologies, TotalEnergies, and MIND Technology in their recent analysis, focusing on their performance and market outlook [1][2]. Amazon.com, Inc. (AMZN) - Amazon's shares have outperformed the Zacks Internet - Commerce industry over the past six months, with a gain of 4.5% compared to the industry's 2.4% [4]. - The company projects Q4 2025 net sales between $206 billion and $213 billion, with operating income expected to be between $21 billion and $26 billion, indicating operational efficiency gains [5]. - AI integration is enhancing personalization and logistics, strengthening Amazon's competitive position, although substantial capital expenditures for AI infrastructure may strain financial resources [6]. Palantir Technologies Inc. (PLTR) - Palantir's shares have significantly outperformed the Zacks Internet - Software industry, gaining 32.3% compared to a decline of 6.5% in the industry over the past six months [7]. - The company has $5.4 billion in cash and no debt, providing strong liquidity and visibility, while its AI strategy is driving growth in both government and commercial sectors [8]. - Despite a 122.5% increase in share price over the past year, intense competition and rising costs present challenges, leading to a neutral rating on the stock [9]. TotalEnergies SE (TTE) - TotalEnergies' shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry, with a 5.9% increase compared to the industry's 1.7% over the past six months [10]. - The company is benefiting from contributions from startups and well-spread LNG assets, with a focus on generating 15-20% of sales from low-carbon business by 2040 [11]. - However, security concerns in some production regions and acquisition-related risks pose challenges to its operations [12]. MIND Technology, Inc. (MIND) - MIND Technology's shares have gained 11.4% over the past six months, although this is below the Zacks Technology Services industry's gain of 15.4% [13]. - The company secured a $9.5 million seismic contract in December 2025, indicating improving demand, and has expanded its Huntsville facility to support higher-margin throughput [14]. - Despite recent gains, declining revenue and backlog highlight demand volatility, and rising operating expenses may pressure profitability [15].

Core Insights - Palantir Technologies Inc. is a major player in advanced data analytics software, serving both government and commercial clients, with a market capitalization of approximately $400.1 billion, categorizing it as a "mega-cap" company [1]. Company Overview - The company offers a diversified portfolio of platforms, including Gotham, Foundry, Apollo, and AIP, which cater to various sectors such as intelligence analysis, enterprise operations, system deployment, and large language model integration [2]. Financial Performance - Palantir's Q4 fiscal 2025 earnings are anticipated to show a diluted EPS of $0.17, representing an 1,800% increase from the previous year's loss of $0.01 per share, although the company has only met EPS estimates in two of the last four quarters [3]. - In Q3 fiscal 2025, Palantir reported revenue of $1.18 billion, a 62.8% year-over-year increase, exceeding analyst expectations of $1.09 billion, with an adjusted EPS of $0.21, surpassing the forecast of $0.17 [4]. Market Reaction - Following the strong Q3 results, initial market enthusiasm waned due to valuation concerns and the revelation of a significant options position betting against the stock, leading to a nearly 7.9% decline in PLTR stock in the subsequent session [5]. Future Projections - Analysts project a continued earnings momentum, forecasting a diluted EPS increase of 550% year-over-year to $0.52 for fiscal 2025, followed by a further 51.9% rise to $0.79 in fiscal 2026 [6]. Stock Performance - Over the past 52 weeks, PLTR stock has surged by 123.3%, with a year-to-date gain of 5.6%, significantly outperforming the S&P 500 Index, which rose 16.9% during the same period [7]. Strategic Developments - On December 10, 2025, Palantir's shares rose by 3.3% following a partnership announcement with the U.S. Navy, which involves deploying Foundry and AIP across the Maritime Industrial Base, with a potential value of up to $448 million, enhancing Palantir's position in defense infrastructure [8].

Core Insights - Palantir and CrowdStrike are identified as two of the most expensive AI stocks, with investor concerns primarily focused on valuation despite a general interest in AI stocks for 2026 [1] Palantir Technologies - Palantir's stock trades at a forward price-to-sales (P/S) ratio of 67 times 2025 analyst estimates and 49 times 2026 consensus, significantly exceeding the median enterprise value-to-sales multiple of around 20 times for software stocks in 2021 and 2022 [2] - The company has experienced accelerating revenue growth, reaching 63% last quarter, driven by increased adoption of its Artificial Intelligence Platform (AIP) among U.S. commercial customers [4] - Palantir's customer count increased by 45% in Q3 2025, and its net dollar retention rate is at 134%, indicating strong growth from existing customers [5] - The U.S. government, as Palantir's largest customer, is also expanding its contracts as it modernizes its defense and intelligence capabilities [6] - Despite its growth potential, the stock is considered overvalued, with historical examples of major tech companies experiencing significant stock price declines before eventual recoveries [7] CrowdStrike - CrowdStrike's stock trades at a forward P/S multiple of nearly 25 times the fiscal 2026 consensus and 20 times fiscal 2027 forecasts, raising concerns about its valuation [10] - The company's annual recurring revenue (ARR) growth had been decelerating but accelerated to 23% last quarter, while total revenue rose 22% [11] - The introduction of the Falcon Flex licensing model has significantly boosted ARR for customers adopting it, with some seeing their ARR triple in Q3 [12] - For CrowdStrike to justify its current valuation, revenue growth needs to accelerate to the 30% range and maintain that level [13]