Palantir’s shares had a wild ride last week. They dipped 1.6% on Friday, with a 5.6% drop for the entire week. Investors are scratching their heads over the firm’s steep valuation.

But hey, what’s new? This is Wall Street. Palantir, famous for its AI and data analytics software, saw its stock plummet by 12% on Tuesday. That haircut cost them $35 billion in market cap, all because of slipping international sales. The earnings report got folks talking about whether this tech giant is overvalued.

The rollercoaster continued, though. Midweek, shares rebounded 1.5% on Wednesday and jumped another 7.8% on Thursday. Why? A US-UK trade deal announcement had stocks broadly rallying. Those gains shoveled roughly $24 billion back into its market cap. By Friday, it was at $277 billion, a bit off from the $293 billion high the week before.

Palantir’s influence stretches wide. From helping Mount Sinai in healthcare, Citi in finance, BP in oil, to Stellantis in automaking, they’re everywhere. Yet, the company’s activities in surveillance and defense have rattled some human rights advocates.

Analysts have mixed feelings. RBC Capital Markets and Jefferies are cautious, highlighting that Palantir’s valuation might be risky. They project the shares will drop to $40 and $60. Analyst Brent Thill even called the valuation “irrational.”

Conversely, DA Davidson’s Gil Luria stays neutral, suggesting that if Palantir performs solidly, there’s no reason for the stock to stagnate. Still, those sky-high valuations don’t often stick around. Competitors cracking the code or any hiccup in US federal spending could spell trouble.

In recent years, Palantir stock soared by a whopping 455%. Much of that meteoric rise is thanks to the AI boom. However, according to William Blair analyst Louie DiPalma, Palantir’s revenue growth might slow down by 2025-2026 due to competitive pressures.

Market Moves and Valuations

Palantir’s recent first-quarter earnings showed a 5% decline in international sales. The “headwinds” in Europe are palpable. Since 2023, they’ve struggled to make waves due to a sluggish AI market and Europe’s bid for “tech sovereignty.”

Palantir’s alignment with the Trump administration, especially with its defense contracts, doesn’t jive with all European clients. However, opening doors with more European nations might breathe life into their continental business.

Luria adds, “There’s opportunity if the US clinches similar deals in Europe.” But it’s a big “if.”

Tech and Contracts

Palantir just snagged a $30 million deal with ICE, raising eyebrows over migrant surveillance. Another shiny contract with the US Army, worth $178 million, has them working on AI military trucks.

While these wins boost the stock temporarily, they also fuel debates over ethics and politics.

Stocks can swing wildly, especially with towering valuations. Keep an eye on new developments and contracts.

For more about what’s shaking up the stock market, you can read the latest stock moves.

Laura Bratton from Yahoo Finance keeps tabs on these stories. Follow her on Bluesky or shoot her an email.

Catch the latest technology news and stay updated on financial happenings for more insights.

And remember, even a New Yorker will tell you: in the ever-twisting world of stocks, it’s always smart to stay informed—and maybe just a bit skeptical, too.

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Market volatility—you just can’t escape it these days. Investors are increasingly focused on risk-adjusted strategies. Enter Exchange-Traded Funds (ETFs). The beauty of an ETF? You get exposure to high-growth stocks without carrying the “single-stock risk” that can keep you up at night.

Palantir Technologies is making a splash. The company’s latest quarter performance went above and beyond Wall Street’s expectations. If you’re looking to dip your toes into Palantir without holding its stock directly, several ETFs are worth keeping on your radar.

Here’s Why Palantir Is A Stock To Watch

You see, Palantir issued a bold 2025 revenue forecast at $3.75 billion. This easily beat the predicted $3.54 billion. CEO Alex Karp attributed the optimistic outlook to what he called “untamed organic growth” spurred by increasing demand for AI. Furthermore, they’re eyeing $1.56 billion in adjusted operating income—eclipsing the $1.37 billion analysts envisioned.

If numbers are your thing, consider this: Fourth-quarter 2024 revenue rose 36% to $827.5 million, surpassing the anticipated $775.9 million. Profit jumped to 14 cents per share, exceeding predictions of just 11 cents. With AI propelling its momentum, Palantir’s stock skyrocketed a staggering 340% in 2024. By Tuesday morning, shares hit $106.76—up 27%, marking their most significant intra-day leap in a year, Bloomberg reports.

ETFs to Consider for Palantir Exposure

• REX AI Equity Premium Income ETF (AIPI): It’s for those who want a significant piece of Palantir action. This ETF dedicates 10.77% to Palantir’s assets, with a 0.65% expense ratio. It saw a modest 0.4% uptick on February 4.

• ARK Innovation ETF (ARKK): Known for bold moves, Cathie Wood’s ARKK consistently places Palantir in its top 10 holdings. The fund allocates 5.43% to Palantir, boasting a 0.75% expense ratio. As of now, it’s trading relatively flat.

• Global X Defense Tech ETF (SHLD): About 10% of this ETF focuses on Palantir. With an expense ratio of 0.5%, it yielded a healthy 35% return last year and rose 2.27% at the time of writing on February 4.

• First Trust US Equity Opportunities ETF (FPX): Catering to those interested in relatively fresh public companies, despite Palantir entering the fray in 2020, the ETF still finds value in it. They allocate approximately 7.05% to the stock. Investors eyeing growth-laden IPOs might find its 0.59% expense ratio compelling. It surged by 1.05% as of writing on February 4.

The Bottom Line

Investing in these ETFs? They let you ride Palantir’s tidal wave while diversifying risk across a jam-packed portfolio of high-tech stocks. It’s enough to keep your investment dreams as vibrant and enduring as the city’s lights.

For more insights, check out what’s driving Palantir stock these days. Don’t forget to follow all the ripples on Benzinga India Telegram channel for real-time updates on market gyrations.

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