Palantir: A Most Singular Speculation

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Palantir Technologies (PLTR +4.70%) has, with a rather startling lack of modesty, decided to ascend. A surge of six percent, as of this morning, suggests the market, in a fit of temporary reason, is beginning to appreciate its peculiar charms. One might say it’s finally realizing that valuing a company on mere earnings is frightfully… pedestrian.

This artificial intelligence and data mining specialist remains, admittedly, a divisive creature. But then, all truly interesting things are. To be universally admired is to be utterly unremarkable. Palantir, it seems, is gradually winning over the skeptics, though one suspects it cares little for their approval.

A Convert, At Last

Mizuho Securities, in a gesture of belated enlightenment, has upgraded Palantir to ‘outperform’ – a term so desperately lacking in imagination. Their price target of $195 suggests a potential gain of 47% from Tuesday’s closing. The analyst observes that the company’s growth and margin expansion are “unlike anything else in software.” A statement so obvious, it’s almost witty. He further posits that Palantir’s AI offering is “in a category of one.” Which is, of course, precisely the point. To be unique is to be exempt from comparison, and thus, from criticism.

This analyst, it appears, previously feared that Palantir would succumb to the vulgarity of ‘multiple reversion.’ A most dreadful fate, to be sure. However, after a recent 36% decline – a mere trifle for those accustomed to the vagaries of the market – he now deems the risk-reward scenario “compelling.” One suspects a change of heart prompted more by desperation than discernment.

This reversal follows a double upgrade from Freedom Capital Markets, who, with a commendable lack of subtlety, moved from ‘sell’ to ‘buy,’ issuing a price target of $170. A 28% potential upside, they claim. Such optimism is almost touching. Their justification? Recent results have “sailed past” expectations, fueled by accelerating adoption of the Artificial Intelligence Platform (AIP). It seems the public, at last, is willing to pay a premium for the illusion of intelligence.

Palantir is, slowly but surely, converting the Wall Street multitudes. In late January, only six of twenty-six analysts dared to offer a ‘buy’ or ‘strong buy’ rating. Now, thirteen of twenty-seven hold that opinion. A rather rapid reversal, brought about, naturally, by Palantir’s acceleration. To be fast is, after all, half the battle. Especially when one is attempting to outrun reality.

Let us be clear: Palantir remains extravagantly priced, currently trading at 210 times earnings. Though, mercifully, down from a scandalous 396 last month. The stock will likely remain a battlefield for speculators, but despite its exorbitant price tag, Palantir, quite simply, is in a class by itself. And one should always invest in things that refuse to be categorized.

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2026-02-18 19:42