Top Investor Confirms Palantir Stock’s Potential
Investors in Palantir Technologies (NASDAQ: PLTR) experienced a setback last week. After a remarkable 345% surge in share prices over the past year, a report concerning security flaws in a communication system caused the stock to drop by 7.5% on Friday.
Impact of Security Concerns on Palantir
Palantir and the U.S. Army responded by clarifying that these flaws were identified and addressed promptly. Such incidents are rare for Palantir, which has been enjoying a steady rise in revenue. For example, in Q2 2025, the company reported revenues exceeding $1 billion, marking a 48% increase year-over-year.
- Total contract value for Q2 2025: $2.27 billion (up 140% year-over-year)
- Projected sequential growth in Q3 2025: highest in company history
Investor Perspectives on Palantir Stock’s Potential
Despite recent challenges, investor Rick Orford remains optimistic about Palantir’s future. As a top-tier investor, Orford emphasizes the significant growth drivers for the company. He notes that:
- Palantir’s AI platform democratizes technology for users lacking technical expertise.
- Recent boot camps have accelerated adoption, improving sales cycles and driving commercial revenues.
- A new 10-year partnership with the U.S. Army is valued at $10 billion, consolidating previous contracts and providing a stable revenue base.
- Palantir has expanded its reach across various industries, including a recent collaboration with SOMPO Holdings in Japan.
Orford states, “Palantir isn’t just selling apps. They’re embedding into their client’s critical infrastructure worldwide.” He believes these factors could support further growth in the stock’s value.
Current Market Sentiment
However, Wall Street has mixed feelings. Analysts have assigned PLTR a consensus Hold rating, with 13 Holds, 4 Buys, and 2 Sells. The average price target is $156.53, suggesting a potential downside of nearly 10% in the upcoming year.
Palantir’s stock, while facing some challenges, continues to present a narrative of growth and opportunity. Investors are encouraged to analyze the situation carefully before making decisions.
