Is Palantir Stock A Buy In December? Here’s What Matters Most For PLTR Stock

There are a lot of things that bulls and bears can compete over Palantir Technologies (PLTR), a maker of data analysis software, amid an outstanding evaluation for the company. While Palantir shares fell in November along with some other AI toys, e.g oracle (ORCL), shares still up 122% in 2025.

Even with fast-growing commercial revenues, some investors believe Palantir is a defense stock, given its roots in government contracting work and new opportunity in mission-critical AI defense systems. For Palantir stock to shine in 2026, the company may need to secure more large government and defense contracts.

However, Palantir’s stock valuation is largely tied to it being an “AI-first” software company with rapidly growing sales in the enterprise market.

What is clear is that the trade in synthetic stocks has lost some momentum. As economist Ed Yardeni puts it, “Although the AI ​​bubble is not bursting, it is losing some air.”

Some technical ratings on Palantir stock have weakened. PLTR stock has fallen 19% from its record high of 207.52 set on November 3. Several AI stocks pulled back from their 52-week highs. Aside from the valuation of Palantir shares, bears pointed to insider selling.

Meanwhile, Palantir reported third-quarter earnings and revenue that exceeded Wall Street targets, helped by U.S. government and business growth. In the third quarter, Palantir’s earnings were 21 cents on an adjusted basis, double what they were a year ago. The software maker said revenue rose 63% to $1.18 billion. Analysts expected Palantir to report third-quarter adjusted earnings of 17 cents per share on revenue of $1.09 billion.

Palantir Stock: The Outspoken CEO

Here’s what investors need to know about the data analytics software maker and its CEO, Alex Karp.

Palantir has its roots in prediction-based AI, primarily using pattern recognition tools. It is now upgrading products to generative AI, which relies on advanced reasoning models and provides new outputs based on conversational user prompts.

Since its founding, Palantir has provided data analysis tools for government customers for intelligence gathering, surveillance, counterterrorism, and military purposes. Palantir now aims to use generative AI to stimulate growth in the US commercial market, such as healthcare and financial services.

Overall, Palantir stock rose on views that the company appears poised to win more U.S. government business during the Trump administration.

Palantir recently hosted its eighth synthetic customer conference. Furthermore, Palantir initially launched its “AI Platform” in early 2023. AIPCon is the company’s main marketing event showcasing real-world AI use cases.

Here’s a look at Palantir’s go-to-market strategy for AI.

IBD Methodology: How to Invest in Stocks with Risk Management

Several members of the Trump administration have ties to Palantir, a company co-founded by longtime venture capitalist Peter Thiel. Among them is David Sachs, who has been named the White House’s AI and cryptocurrency czar.

Meanwhile, Palantir appears to be well-positioned for the Trump administration’s plans to create a “Gold Dome” air and missile defense shield that could protect the United States from long-range strikes. But it faces competition from the Golden Dome Lockheed Martin (LMT).

Palantir stock technical evaluation

Furthermore, Palantir stock is up 340% in 2024, with most of the gains coming after Donald Trump won the presidential election.

Institutional ownership has weakened. PLTR stock carries an Accumulation/Distribution rating of C. The rating analyzes price and volume changes in the stock over the past 13 weeks of trading. A+ indicates heavy institutional buying; E means heavy selling. Think of C as neutral.

Another technical classification stumble. PLTR stock has 21 days left Atr By 5.80%.

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