New York, May 24, 2026, 16:03 (EDT)
- Palantir ended Friday at $136.88, slipping 0.39% for the session but up 2.16% for the week. Nasdaq will be shut Monday for Memorial Day.
- The next hurdle for the stock is if investors will stick with its AI premium now that Palantir hiked its 2026 revenue outlook and put up 85% first-quarter revenue growth.
- Last week saw Dell and Nvidia form an AI tie-up, London police lose out on a contract, and new filings on executive stock sales.
Palantir Technologies Inc. heads into this holiday-shortened U.S. week with heavy AI demand in focus, while valuation questions and political concerns haven’t gone away. Shares ended Friday’s session at $136.88, slipping 0.39%. Still, the stock finished up for the week after closing the previous Friday at $133.99.
U.S. equity trading shuts down Monday for Memorial Day, so traders won’t get a fresh read until Tuesday. That comes after investors already lifted broader stocks over the past week – Reuters said Friday’s session saw the Dow touch an intraday record on Middle East talks and earnings optimism.
Palantir is still pitching its main growth story on artificial intelligence software for government and business clients. The company lifted its 2026 revenue outlook to $7.65 billion-$7.66 billion earlier this month, after first-quarter revenue climbed 85% to $1.63 billion. U.S. commercial revenue was up 133%. U.S. government revenue rose 84%.
Chief Executive Alex Karp didn’t mince words in a letter to shareholders. “The United States remains the center” of Palantir’s business, and that business is “erupting.” The company called out a Rule of 40 score of 145%. That combines revenue growth and profit margin, a common software metric meant to show if a company is growing quickly with discipline. Reuters
Palantir shares saw a choppy stretch last week. The stock moved between $131.33 and $139.02, ending Friday below where it closed on May 4, when earnings landed at $146.03.
Dell Technologies gave bulls something new Monday, announcing with Palantir an on-premises AI operating system. The deal puts Palantir’s Foundry and Ontology on Dell’s AI Factory hardware with Nvidia. Dell CEO Michael Dell said businesses have to “turn intelligence into impact at speed.” Nvidia chief Jensen Huang said enterprise AI adoption is “going parabolic.” Dell
London took a harder stance. Mayor Sadiq Khan stopped the Metropolitan Police’s planned 50 million pound contract with Palantir, after officials said the police didn’t hold a full procurement process and mainly looked at Palantir as a supplier.
Palantir’s UK and Europe boss Louis Mosley said Khan is “putting politics above public safety,” after the mayor’s office called out a “clear and serious breach” of procurement rules. This dispute is key for Palantir since public sector contracts drive much of its growth, and dealing with data access, ethics, and tighter scrutiny can hold up deals, even when demand for AI is high. The Guardian
Filings out after the bell Friday gave another data point but didn’t show any shift in operations. A Form 4 showed Karp converted 397,744 Class B shares to Class A shares and sold off all the new Class A shares right away. The filing said these sales happened automatically to handle tax withholding from vested stock units, following a Rule 10b5-1 plan, which is a preset executive trading plan allowed by the SEC.
Wall Street remains divided on Palantir. According to MarketScreener, 31 analysts track the stock, landing on an “outperform” average call. The price targets stretch from $70 up to $255, with the average at $183.73. That range sums up the debate: strong growth, but no clear sense of value. MarketScreener
Jefferies analyst Brent Thill sees a clear risk for Palantir. Thill says the main question isn’t whether demand stays high, but if growth can keep speeding up as Palantir gets bigger. He flagged the stock’s valuation risk too, arguing it needs a “heroic durability assumption.” Thill warns that if AI hype fades, government deals slow, or growth just eases a bit, Palantir might see a de-rating — meaning investors wouldn’t pay as much for each dollar of sales or profit. Business Insider
Palantir’s open on Tuesday is the main indicator to watch this week. The stock needs to stay above Friday’s $134.30 intraday low or try to reach $139.02 again. But those are just the short-term prices. The bigger focus is whether Palantir’s AI spending push — with growth in U.S. government and commercial deals — can keep getting ahead of new valuation concerns from analysts, regulators and public sector customers.
