Palantir (NASDAQ: PLTR) saw its stock drop nearly 10% on Wednesday, even after HSBC upgraded its rating from “Hold” to “Buy” and raised its price target from $197 to $205.
HSBC’s analyst, Stephen Bersey, believes the company’s U.S. commercial segment could grow at a staggering rate of 58.8% annually from 2025 to 2029, hitting $9.3 billion in revenue by 2029. Bersey highlighted Palantir’s strong performance in the fourth quarter of 2025, where revenue jumped 137% year-over-year to $507 million, compared to a 122% increase the previous quarter.
While the upgrade shows confidence in Palantir’s capabilities, there’s a bit of caution. Bersey pointed out that some internal AI projects might not deliver the returns they expect. This uncertainty could slow down future contract signings.
Investors seemed to react to these warning signs rather than the positive growth numbers, pushing the stock lower. Many market watchers are now focusing on the upcoming sales figures and new contracts to gauge if the growth trend is sustainable.
Historical context adds depth here. Just a couple of years ago, Palantir was seen as a tech underdog, struggling to find its footing in a competitive market. Now, its potential growth looks promising, yet the path ahead remains uncertain.
In recent social media discussions, many users expressed mixed feelings, praising the growth but also voicing concerns about the company’s future prospects.
For further detailed insights, you can check out more from GuruFocus.
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Stephen Bersey, HSBC, compound annual growth rate, Palantir, GuruFocus
