Palantir's stock slumps 26% in 2025 despite strong analyst backing

Shares of Palantir Technologies dropped on Tuesday as part of a broader decline this year. The stock fell 2% to $131.94, extending its year-to-date loss to 26%. This marks a significant drop from its November 2025 peak of $207.18. Analysts continue to view Palantir as a leader in enterprise AI software. However, they also highlight its status as the most expensive option in the software sector.

Among 32 Wall Street analysts, the consensus rating for the stock remains Overweight. The average price target stands at $189.87, implying a potential upside of 44% from current levels.

Recent rating adjustments reflect mixed sentiment. Wolfe Research upgraded Palantir from Underperform to Peer Perform but did not set a new price target. Meanwhile, UBS maintained its Buy rating with a $200 target, despite growing competition from firms like OpenAI, Anthropic, and Databricks. Palantir’s stock has fallen sharply since its peak but retains strong analyst support. The average target suggests significant upside potential, though concerns about valuation and competition persist. The company remains a key player in the enterprise AI market.