What Happened?

Shares of data analytics company Palantir Technologies (NASDAQ: PLTR) jumped 4.3% in the morning session after Wedbush analyst Dan Ives expressed strong confidence in the company's long-term value, suggesting investors should "triple down" on the stock. 

Ives stated he saw a potential "$1 trillion market cap" for Palantir over the next two to three years due to its unique position in the enterprise AI landscape. This positive commentary came after the stock had a difficult previous month, falling about 20% amid investor concerns over high valuations in the AI sector. The analyst's confidence appeared rooted in the company's strong performance, as Palantir's third-quarter revenue had increased by 63% year-over-year. This growth was driven by a 121% surge in U.S. commercial revenue, fueled by its Artificial Intelligence Platform (AIP). Following the strong results, the company also raised its revenue outlook for the fourth quarter and the full year.

After the initial pop the shares cooled down to $172.02, up 2.8% from previous close.

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What Is The Market Telling Us

Palantir Technologies’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock gained 6.5% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.

Palantir Technologies is up 129% since the beginning of the year, but at $172.02 per share, it is still trading 17% below its 52-week high of $207.18 from November 2025. Investors who bought $1,000 worth of Palantir Technologies’s shares 5 years ago would now be looking at an investment worth $7,640.

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