This article first appeared on GuruFocus.
Palantir Technologies (PLTR, Financials) shares drew attention after Cathie Wood’s ARK Invest sold 58,741 shares, valued at roughly $10 million, following a recent 2.7% drop in the stock. Despite a 163% gain in 2025, Palantir has declined about 4.6% over the past quarter as investors weigh growth potential against valuation risk.
The deal happened after former President Donald Trump suggested a $1.5 trillion U.S. military budget by 2027. This is thought to help Palantir’s government AI contracts. Analysts are still divided on the stock’s high multiples, however.
Truist Securities started covering Palantir with a Buy rating and a price target of $223, calling it a best in class AI asset.The company said that its sales grew by 63% from one year to the next and its operating margins grew by more than 50%.
Jefferies and RBC, on the other hand, maintained their Sell recommendations, saying that the stock might lose up to 70% of its value because of pressure on its valuation.