Summary

• Palantir Technologies Inc. faces near-term pressure from European government contract losses, macro headwinds, and sector-wide selling, but I will reiterate my Buy rating.
• PLTR’s long-term thesis remains intact, with 11 consecutive quarters of revenue acceleration and unmatched Rule of 40 score that will not weaken given its defensible AI platform.
• Valuation concerns have eased; PLTR stock trades at 87x FY26 PE, compressing to 39x FY28, with 52–100% potential upside to Wall Street’s “average” and “high” price targets.
• I am scaling into PLTR in tranches, viewing the selloff as a buying opportunity, while managing downside risk to the $70/share “low” Wall Street price target.
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Introduction & Investment Thesis

After three consecutive years of 100%+ gains, Palantir Technologies Inc. (PLTR) stock is finally having a hard time in 2026.

Since the start of June, software industry has come back

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR, IGV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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