🎁What the Tigers Say | Palantir -13%: Bubble Bursting or AI Bargain?

Palantir reported Q1 revenue of $884 million—up 39% year-over-year and above analyst estimates. EPS hit $0.13, rising from $0.08 a year ago and matching Wall Street expectations. But despite the solid numbers, the stock plunged 13%, as investors may have been expecting another blockbuster quarter like February’s.
Is this sharp drop a warning sign that Palantir’s valuation has run too far ahead of reality? Or is this a rare chance to load up before its next leg higher in the AI boom?
Is the current valuation still justified? What’s your take—and your target price?

🎁Special Notes: Whoever showed up on the” What the Tigers Say” column will receive 100 Tiger Coins and an exclusive interview invitation to honor your contribution.

Click titles to read the full analysis:

1. @KKLEE:

Key Points:

Rising Competition: A Ticking Time Bomb?

The AI space is heating up. While Palantir was once seen as a niche leader, competitors like Microsoft, Google, and even Snowflake are encroaching on its territory. With more companies investing heavily in AI-driven data analytics, Palantir's edge is being challenged. Contracts that were once easy wins are now battlegrounds.

Moreover, government budgets aren't expanding at the same pace as tech innovation. With more competition for limited government tech spending, Palantir might find itself squeezed out of key contracts, impacting its revenue streams.

The Technicals: More Pain Ahead?

Technically speaking, Palantir's chart is flashing warning signs. The 13% drop pushed it below critical support levels, and if it doesn't recover soon, the next leg down could be significant. Analysts are eyeing $10 as the next major floor—if broken, sentiment could unravel quickly.

The Relative Strength Index (RSI) indicates it's in oversold territory, but with momentum firmly negative, catching a falling knife is risky business. Bulls hoping for a quick bounce might be disappointed if broader market sentiment continues to favor risk-off strategies.

2. @VEI:

Key Points:

And an awareness to myself to trade prudently.

Sold 50 earlier at above 120 and anticipating another hike from after the result release.

The result was good but not impressive. Thus am staying out for now and re enter once the price is right.

Investing is a an art.

3. @BG68:

Key Points:

Continue a lethargic outlook due to tariff uncertainty. Spending will come to a halt.

4. @IYYAP:

Key Points:

My cost price was low, if drop to $77 I will buy again!

5. @Shyon:

Key Points:

Strengths:

Robust U.S. Commercial Growth: Revenue in this segment grew 71%, a testament to successful AI product adoption.

Government Contracts: Secured major deals, such as a $178 million U.S. Army contract, reinforcing its strategic role in defense.

Profitability: Remains consistently profitable, with improving margins and expanding use cases in healthcare, manufacturing, and finance.

Weaknesses:

Valuation Risk: A forward P/E still significantly higher than industry peers, causing skepticism even after solid results.

Dependence on U.S. Growth: International expansion remains modest compared to domestic momentum.

Execution Risk: Rapid commercial scaling and multi-sector diversification could lead to operational strain if not managed efficiently.

Technical Outlook

At $120, Palantir was testing resistance last seen at 2024's highs. Post-earnings selling pressure has pushed it back, suggesting profit-taking and sensitivity to broader market factors. Key levels to watch:

Support: $110 and psychological $100.

Resistance: $120 remains a ceiling; a break above could trigger moves to $130–$140.

Momentum Indicators: RSI is cooling off from near-overbought, which could set the stage for consolidation before any next leg up.

Palantir delivered a strong Q1 report, but high expectations and macro volatility triggered a pullback. I remain cautiously optimistic: the fundamentals justify confidence, but the price action reflects market fragility. I will closely monitor the $100–$110 support range and look for technical stability before adding exposure. Execution, global growth, and political outcomes will shape whether PLTR can sustainably push past $130.

6. @Blinkfans:

Key Points:

Buy as it retreats from all time high.

7. @Prosperity:

Key Points:

Sell PLTR PUT US20250516 90.0.

Wouldn't mind buying the dip at 89USD!

8. @mster:

Key Points:

PLTR while announce a stunning earnings, the value of the stock is however already priced in. In value investors' view, the share is way over valued, thus the share still tumbled despite the good report. However would think this May be a short dip with many investors Cashing out, pushing the price down before re-entering. Well let's see how this ticker develops over the next few days.

9. @LiverpoolRed:

Key Points:

Sell PLTR PUT US20250523 88.0.

Selling put option to earn premium and intend to buy the shares as this price.

10. @ST Capital:

Key Points:

IV Crush due to earnings destroyed most of the potential gains, unfortunately. Lesson learnt here.

Questions for you:

Is this sharp drop a warning sign that Palantir’s valuation has run too far ahead of reality? Or is this a rare chance to load up before its next leg higher in the AI boom?

Is the current valuation still justified? What’s your take—and your target price?

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⏰Duration

• 7 May (24pm EDT)