PLTR Slides More Despite Strong Results And Forecast — Cathie Wood’s ARK Buys The Dip As Analysts Raise Price Targets

• Analysts and investors signal a bullish view on Palantir after its Q3 results.
• ARK Invest bought over $11 million in shares on Monday.
• Retail sentiment for PLTR increased to ‘extremely bullish’ from ‘bullish’ the previous day. 

Palantir Technologies, Inc. (PLTR) shares slid 4% in overnight trading late on Tuesday, extending their six-session slide, despite the company’s upbeat quarterly report on Monday.

Palantir is facing pressure over concerns that record AI investments are unsustainable and that sales and valuation gains for companies in the AI sector may fade.

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The overnight drop is in line with a fall in the broader market as polls show Democrats heading for majority control of Congress. Investors fear a big Democratic win could mean more restrictions on data centers, which could limit the AI buildout.

Still, moves by analysts and investors signal a bullish view. Amid a series of upward price target revisions from analysts, Cathie Wood’s ARK Investment Management purchased shares of Palantir on Monday.

Cathie Wood’s $11M PLTR Bet

The ARK funds bought 63,638 shares, worth about $11.3 million at PLTR's closing price on Monday. Over the past year, ARK has both bought and sold Palantir stock, even as shares surged in the second half of the year.

ARK purchased shares of Shopify (SHOP) and pared stakes in Alphabet (GOOGL) and CrowdStrike (CRWD), among other trades.

PLTR Stocks: Analyst View, Stock Move

On Monday, Deutsche Bank raised its price target on PLTR to $240 from $225, and Northland raised its target to $210 from $200. 

Over the past two days, several analysts have raised their targets. An outlier, Jefferies kept its target steady at $80 with an ‘Underperform’ rating and said it sees “more compelling” risk and reward elsewhere in Microsoft (MSFT), Oracle (ORCL), and Snowflake (SNOW). 

Palantir shares have declined since hitting an all-time high mid-last month, including the sharp 16% fall in the last six sessions.

Currently, 22 of 33 analysts have a ‘Buy’ or higher rating on PLTR, nine rate it ‘Hold’ and two rate it ‘Sell’ or lower, as per Koyfin data. Their average price target of $217.15 implies 24% upside from the last close.

PLTR’s Q3 Recap

The AI data analytics company delivered one of its strongest reports yet. Total sales rose 96% to $2.31 billion and net profit increased to $1.13 billion from $475.6 million a year earlier. 

A big draw from the report was that Palantir’s U.S. commercial business surpassed its government business for the first time, climbing 148% to $984 million. The U.S. government revenue rose 96% to $953 million.

Palantir also lifted its full-year guidance.

Retail View On PLTR

On Stocktwits, the retail sentiment for PLTR improved to ‘extremely bullish’ from ‘bullish’ the previous day. 

“$PLTR Added this morning. This will be back up. Phenomenal quarter. Time will tell,” posted a trader.

Another trader echoed the view, saying: “$PLTR doubt PLRT goes green during market hours today - did a great job clawing back BS sell-off - great buying OPP!”

PLTR stock remained 1.3% for the year.

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