Palantir’s stock is climbing amid a heated political debate in Germany over the use of its controversial analytics software. A senior digital minister endorsed the technology for national security agencies, arguing it would help counter foreign threats. Several German states already deploy the software, with others considering adoption, and a nationwide rollout is under evaluation. However, the justice minister urged caution, emphasizing compliance with legal standards. This controversy has kept Palantir in the spotlight, reinforcing investor interest. The stock rebounded premarket after a slight dip, nearing its record high of over $160, with a market cap exceeding $364 billion.
Valuation Concerns Persist Despite AI Hype
Analysts remain skeptical, with the average price target ($111.14) suggesting a 28% downside. Only 4 of 17 analysts recommend buying, citing stretched valuations despite Palantir’s AI-driven growth. Its AIP platform, popular in defense contracts, is expected to deliver Q2 revenues of $934–938 million. Yet, questions linger about sustainability and margin performance. The stock’s 104% year-to-date surge hinges on upcoming earnings, which must justify its premium. While political tensions may drive demand, the current valuation leaves little room for error.
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