Majority Of Stocktwits Users Reject Analysts’ Palantir Overvaluation Claim: Retail Optimism Surges Ahead Of Q4 Results

Palantir Technologies, Inc. (PLTR) stock has reclaimed the $80 level after dropping to as low as $63.40 earlier this month. 

An ongoing Stocktwits poll asked retail users of the platform about analysts’ views that the stock is overvalued. A majority of the 4,200 users who responded said Palantir stock is either fairly valued or positioned for strong gains.

Twenty-four percent of the users said the stock is “fairly valued given its growth potential,” and 31% think President Donald Trump-initiated Stargate private investment in artificial intelligence technology and infrastructure will drive massive upside for the stock.

A sizeable 24% said the stock is “overvalued and this won’t end well," and 21% conceded Palantir is overvalued but felt the stock is still worth the risk.

Responding to the poll, a stock watcher pointed out that analysts have been wrong about Palantir stock for the past year and a half to two years. It was the best-performing S&P 500 stock in 2024, thanks to a mouth-watering 340% gain.

According to TipRanks data, the average analysts’ price target for Palantir ($51.50), suggesting scope for nearly 37% downside from current levels.

The stock currently trades at a pricier forward price-earnings multiple of around 170 times, according to Yahoo Finance. 

Palantir is scheduled to report its fiscal year 2024 fourth-quarter results after the market closes on Monday. Analysts expect the artificial intelligence (AI)-powered data analytics company to report earnings per share (EPS) of $0.11, up from the year ago’s $0.08, and revenue of $775.91 million versus 2023 fourth-quarter’s $608.35 million. 

On Stocktwits, retail sentiment toward Palantir stock remains ‘extremely bullish’ (77/100), with message volume tempering to ‘normal’ levels.

A user highlighted a cup-and-handle formation and said the stock will run.

Another said Palantir is going to obliterate expectations.

Palantir ended Thursday’s session up 1.83% to $81.22, marking a 7.4% gain for January.

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