Palantir Stock On Track To Snap 5-Session Losing Streak Despite Sell-Side Prediction For More Weakness: Retail Hopes Worst May Be Behind

Palantir Technologies, Inc. ($PLTR) stock could snap its five-session losing streak as it climbed in Tuesday’s premarket. The stock has lost over 23% from its Dec. 24 all-time high of $84.80, and an analyst at Jefferies predicts that there could be further downside.

Jefferies analyst Brent Thill noted the stock traded at 46 times enterprise value to the next 12-month revenue despite the 15% drop so far in January, TheFly reported. The valuation is two times that for the next highest software name.

Palantir ended 2024 as the best-performing S&P 500 stock, thanks to the 341% rally, mostly back-end loaded.

Thill also noted that insider selling under the 1065-1 plans, continues, with CEO Alex Karp selling over $2 billion in stock and other executives disposing over $600 million over the last five months.

Also, the analyst expects Palantir stock’s retail premium to reduce going forward, as active institutional ownership increased five points to 32% following the company’s inclusion in the Nasdaq 100 index on Dec. 23.

According to Thill, more downside is likely in the near term due to multiple compression.

Jefferies has an ‘Underweight’ rating and a $28 price target for Palantir stock, portending a potential downside of 57%.

Most on the sell side are wary of Palantir’s valuation. Earlier this month, Morgan Stanley analyst Sanjit Singh assumed coverage of the stock with an ‘Underweight’ recommendation and a $60 price target. Deutsche Bank also affirmed its ‘Sell’ rating, with a price target of $35.

On Stocktwits, retail sentiment toward the stock improved to ‘bullish’(60/100) from the ‘neutral’ mood that prevailed a day ago. Chatter remained subdued, with message volume at a ‘normal’ level. 

A retail watcher on the platform said the premarket move could mark a trend reversal from the recent lean patch.

Another saw short-squeeze loading.

In premarket trading, Palantir stock climbed 2.79% to $66.79 as of 6:19 a.m. ET.

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