In case you missed it, last week Alex Karp, CEO of Palantir (PLTR), openly criticized Wall Street analysts on CNBC for their negative views on his company’s stock.
Despite these criticisms, Palantir shares have soared more than 120% in 2024, rapidly approaching NVIDIA (NVDA)’s performance for the year.
Interestingly, only 32% of the analysts tracking Palantir recommend buying the stock, ranking it as the “Best Performing Least Liked Stock.”
Karp has dismissed critics for years, stating, “People have said we were overvalued for 20 years, that our products wouldn’t be profitable, that we wouldn’t become a powerhouse or achieve GAAP profitability, or be listed on the S&P. They're still saying it. We love it. It keeps others from trying to replicate what we do. And we are winning.”
Despite Wall Street's longstanding skepticism, analysts are likely to reconsider their stance soon.
Palantir will release their latest earnings tonight. A strong report exceeding top and bottom-line expectations could boost the stock by 10-15% in just a few days.
Moreover, optimistic forecasts from the management could trigger a flurry of upgrades from bearish analysts, potentially adding billions to the stock’s market value.
Conversely, a miss on earnings could lead to a 10-15% drop in share price, possibly presenting the last "buy the dip" opportunity before a significant analyst upgrade cycle begins.
Investors find themselves in an almost win-win situation with Palantir stock as tonight's earnings announcement approaches.
A drop to the stock’s 50-day moving average, or $37.50, would be a 17% decline from recent highs, as investors have “sold the rumor” ahead of the earnings call.
Considering the stock’s long-term upward trend and improving fundamentals, this might be your last chance to buy Palantir before it potentially rallies another 30-50% into 2025.
I’ve previously discussed how Wall Street analysts might be the next major drivers of Palantir’s price increases.
Check out that video below.
