Palantir (NYSE: PLTR), an AI-powered Software-as-a-Service (SaaS) provider that allows companies and government agencies to gather and analyze reams of data, enabling the detection of hidden patterns within complex datasets, is in a unique position right now: its operational successes continue to grow, but the sentiment on Wall Street vis-à-vis the stock remains cautious. Now, a William Blair analyst has shed additional light on this unorthodox paradigm via a dedicated investment note.
To wit, William Blair has now tracked 9 additional commercial customers for Palantir, including Wallgreens, R1 RCM, KKR, and Delta Airlines.
Palantir is likely to make additional customer-related announcements at this week's AIPCon conference.
Nonetheless, William Blair remains cautious on Palantir despite the fact that the recent market-wide carnage has reduced the stock's erstwhile sky-high premium.
To the William Blair analyst, Palantir still appears "frothy," with the stock's elevated correlation to the Nasdaq-100 index continuing to act as a major spoiler for risk appetite. As an illustration of this "very high beta correlation," the analyst points to the fact that Palantir declined by 10 percent when the Nasdaq-100 index plunged by 4 percent in the recent tariff- and recession-induced selloff.
The analyst goes on to note:
"If the Nasdaq-100 continues to trend lower, Palantir shares will likely also decline, potentially by a 3-times factor of the market due to its high beta."
Consequently, while William Blair is positive on Palantir's revenue growth guidance of 31 percent for FY 2025, along with an operating margin guidance of 45 percent, the stock's high volatility continues to act as a dampener on the overall sentiment around the stock.
On the flip side, Wedbush's Dan Ives remains an unabashed bull on Palantir despite the recent selloff, pointing to the fact that Palantir's "AIP product moat" remains unmatched, and declaring that the company "is helping lead the AI Revolution into the use case phase."
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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