Palantir Stock Upgraded by Former Longtime Bear: What Changed His Mind?

As an investor, you're always on the lookout for the next big thing. Sometimes, you might find it in the most unexpected places. Take Palantir Technologies (PLTR), for instance. This data analytics company has been on the radar of many investors, but one analyst, in particular, has caught our attention. Mark Schappel of Loop Capital recently upgraded Palantir's stock rating from a neutral stance to a "Strong Buy," with a price target of $141. This upgrade is significant, especially considering that Schappel was previously a long-term bear on the stock. So, what changed his mind?



First, let's address the elephant in the room. Palantir's stock price has been on a rollercoaster ride since its IPO in 2020. The company's shares have experienced significant volatility, with the stock price more than doubling at times and plummeting by over 50% at others. This volatility has likely contributed to Schappel's previous bearish stance. However, recent developments seem to have swayed his opinion.

1. Strong Q4 2024 Earnings: Palantir reported an EPS beat of 23.72% in its Q4 2024 earnings, marking the sixth consecutive EPS beat and the eighth in nine quarters. This strong financial performance indicates that the company is on a positive trajectory.
2. Investment in Shield AI: Palantir announced plans to invest in Shield AI, a startup that develops AI-powered drones. This investment signals the company's commitment to growth and innovation in the AI space.
3. Growth in the Big Data Market: The market for data services is projected to grow from $220.2 billion in 2023 to $401.2 billion by 2028, an increase of 82.2%. Palantir's position as a major player in the Big Data market contributes to its positive outlook.
4. Strategic Partnerships: Palantir's two strategic partnerships with space companies will leverage its AI intelligence to drive innovation in space technology. These partnerships further validate the company's strengths and growth potential.
5. Strong Stock Performance: Since going public on Sept. 30, 2020, Palantir's stock price has risen 885.65%. This impressive performance demonstrates the company's ability to create value for shareholders.



These factors combined led Schappel to upgrade Palantir's stock rating to a more positive outlook. The analyst's new perspective on Palantir's growth prospects and market position aligns with the company's recent financial performance and strategic initiatives. Palantir's strong earnings, investment in AI, and partnerships with space companies have all contributed to the analyst's change of heart.

As an investor, it's essential to stay informed about the latest developments in the companies you're interested in. Keep an eye on Palantir's progress, and consider the factors that have influenced Schappel's upgrade. While the analyst's new perspective is encouraging, it's crucial to conduct your own research and make informed decisions based on your investment goals and risk tolerance.

In conclusion, Palantir's recent financial performance, strategic initiatives, and partnerships have led one analyst to upgrade the company's stock rating from a long-term bearish stance to a more positive outlook. As an investor, it's essential to stay informed about the latest developments in the companies you're interested in and make informed decisions based on your investment goals and risk tolerance.