Palantir Technologies Inc. (PLTR) traded at $153.75 on Thursday, easing from recent highs as investors locked in gains after a strong post-earnings rally. The stock had climbed roughly 30% after Monday's better-than-expected second-quarter report before momentum slowed on Wednesday.

Palantir reported second-quarter revenue of $1.94 billion, up 92.8% year over year and ahead of the $1.81 billion analyst estimate by about $136 million. Adjusted earnings per share came in at $0.41, surpassing the $0.34 consensus estimate. The scale of the revenue beat underscores how demand for large-scale data integration and AI deployment platforms has accelerated as enterprises and governments move from AI experimentation to production workloads.

U.S. commercial revenue rose 149% during the quarter, while government revenue increased 90%. Management said demand for AI sovereignty tools helped drive results. AI sovereignty — the push by nations and large organizations to control their own AI infrastructure, models, and data rather than relying on external providers — has become a spending priority for defense ministries and allied governments, an area where Palantir's Gotham and Foundry platforms are deeply embedded.

The company also raised its full-year 2026 guidance for revenue, profit, and cash flow. Palantir reported an adjusted operating margin of about 62% and free cash flow of roughly $1.22 billion.

Analyst Moves

DA Davidson analyst Gil Luria reiterated a Buy rating and increased his price target from $175 to $200. Mizuho lifted its target to $215 and kept an Outperform rating. Deutsche Bank upgraded PLTR to Buy. Northland set a $200 target, while Piper Sandler maintained an Overweight rating with a $230 target.

Not all coverage was positive. Citigroup lowered its rating from Buy to Market Perform, and BNP Paribas Exane initiated coverage with an Underperform rating. Overall, the analyst consensus remains "Moderate Buy," with an average price target of $190.73. The divergence reflects a broader debate on Wall Street over how to value companies whose growth is tied to AI adoption: bulls point to accelerating commercial traction and margin expansion, while bears cite premium multiples that leave little room for error.

Cantor Fitzgerald also initiated coverage with an Overweight rating this week.

Bearish Signals

Investor Michael Burry wrote on Substack on Wednesday that he believes the market may be "near a major top," referencing a possible 1987-style decline. He confirmed short positions in both PLTR and Tesla.

Cathie Wood's ARK sold about $6.4 million worth of PLTR after the earnings rally.

Dynamic Advisor Solutions LLC reduced its PLTR stake by 21.1% in the second quarter, selling 18,708 units and retaining 69,935 shares valued at around $8.16 million.

Palantir's valuation remains elevated. The stock trades at a price-to-earnings ratio of about 135, with a market capitalization near $380 billion. Analysts say investors are paying a steep premium for continued rapid growth. For context, that P/E multiple is well above most large-cap software peers, meaning the market is pricing in sustained triple-digit revenue growth and further margin expansion for several quarters to come.

From a technical standpoint, PLTR remains 17.7% above its 20-day and 50-day moving averages. The stock is also 1.5% above its 200-day simple moving average of $152.44. Key resistance is seen at $162, while support is around $148.

PLTR's 52-week range is $106.37 to $207.52. Institutional investors hold 45.65% of the stock.