Palantir Shares Fall Amid Expanding Government Contracts and Analyst Divisions, Ranks Sixth in $10.39 Billion Trading Volume

On September 3, 2025, Palantir (PLTR) closed with a 1.39% decline, trading at $159.97 per share, with a trading volume of $10.39 billion, ranking sixth in market activity. The stock, which has surged over 112% year-to-date, remains a focal point for investors amid its expanding role in AI-driven defense and enterprise solutions.

The company’s Gotham and Foundry platforms continue to attract attention for their ability to manage large-scale data analytics in defense, intelligence, and commercial sectors. Recent momentum has been fueled by a steady pipeline of government contracts and speculation about its potential to benefit from U.S. national security initiatives. Reports suggest the Trump administration is considering an ownership stake in Palantir, mirroring its strategic approach with Intel, to strengthen domestic tech and defense capabilities.

However, the stock faces skepticism from short-seller Citron Research, which labeled Palantir “beyond overvalued” and set a $40 price target. This contrasts with Salesforce CEO Marc Benioff, who praised Palantir’s premium pricing strategy and its $310 billion market valuation despite significantly lower revenue compared to his own company. Benioff also acknowledged Palantir’s resilience in specialized markets, even as it faces competition for high-profile government contracts.

Analysts remain divided, with some citing strong Q2 2025 government revenue growth of 53% year-over-year and bullish price targets from firms like Citigroup and Piper Sandler. Yet, the stock’s recent volatility, including a short-term 18% drop, highlights ongoing debates about its valuation sustainability in the AI sector.

Backtest results indicate a 53% year-over-year increase in government revenue for Q2 2025, with Citigroup raising its price target to $177 and Piper Sandler to $182 following the earnings report. Despite these positives, the stock’s mixed performance underscores the challenges of balancing high growth expectations with financial metrics.