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Palantir’s AIP Run Collides With New Bearish Calls as RBC Flags $50 Risk

Strong revenue acceleration with unusually high free‑cash‑flow margins complicates the valuation debate.

Overview

  • RBC Capital’s Rishi Jaluria reiterated a bearish view with a $50 price target for 2026, implying roughly 72% downside from the Dec. 4 close near $178.
  • Shares have surged more than 2,000% since the April 2023 launch of the Artificial Intelligence Platform as investors priced in rapid adoption and deal growth.
  • Recent results featured 63% year‑over‑year revenue growth, EPS up 200%, U.S. commercial revenue up 121%, raised guidance to at least 61% growth, and a 47% free‑cash‑flow margin on $3.9 billion in trailing revenue.
  • Valuation remains extreme by conventional metrics, with reports citing roughly 244 times expected earnings and near triple‑digit times sales, far above Nvidia’s ~24 times revenue.
  • Cathie Wood has trimmed Ark Invest’s position after the rally but still holds Palantir as a major stake, while Wedbush notes continued strong customer interest in AIP demos.