Palantir Technologies (NASDAQ: PLTR) stock dropped 5% on Thursday, extending losses following reports that the U.S. government may implement an 8% annual defence budget cut over the next five years. Given that over 40% of Palantir’s revenue comes from U.S. government contracts, investors reacted with concern, pushing the stock 14% below its record-high close from earlier this week.
However, analysts see a different narrative unfolding, with many viewing the pullback as a strong buying opportunity rather than a sign of trouble. Wedbush analysts, Bank of America, UBS, Citi, and Morgan Stanley all remain bullish on Palantir’s future, citing its Artificial Intelligence Platform (AIP) as a key advantage in a tighter government spending environment.
Palantir Stock Technical Analysis – February 21, 2025
- Current Price: $107.10
- Resistance Levels: $120.00, $125.38
- Support Levels: $99.47, $84.55, $65.79
- RSI : 74.36 – Overbought, indicating potential near-term volatility.
- MACD: Bullish, but momentum is slowing after recent highs.
Is Palantir Stock a Buy?
Despite the short-term dip, analyst sentiment remains overwhelmingly positive on Palantir’s AI-powered defense and enterprise solutions. With strong price target upgrades, a robust AI strategy, and government reliance on Palantir’s software, this pullback could present a long-term buying opportunity for investors.
Given that PLTR stock has more than quadrupled in value over the past year, a correction was inevitable—but many see it as a healthy consolidation before the next move higher.