Palantir Stock Ratings Mixed Amid 35.86% Drop

Palantir Technologies (NASDAQ: PLTR) has recently seen a significant decline in stock price, dropping 35.86% from its peak of $124.62 in mid-February to around $79.93. Analysts express concerns regarding insider selling, particularly by CEO Alex Karp, and potential cuts to government spending that could impact Palantir's revenue, as the Department of Defense represents a substantial portion of its income. Despite the downward trend, some analysts maintain bullish outlooks, with targets as high as $120 from Wedbush and a consensus average around $74.79 among 22 analysts surveyed, indicating a mixed sentiment overall. Jefferies analyst Brent Thill reiterated an 'Underperform' rating, highlighting ongoing concerns about the stock's high valuation compared to peers, while other firms have raised their targets amid the recent volatility. The company remains heavily reliant on government contracts, raising questions about future growth as defense budgets come under scrutiny. Meanwhile, investor sentiment appears cautious as executives continue to liquidate substantial shares amid these developments.