Palantir stock in the red today: analysts remain cautiously optimistic

Shares of Palantir Technologies weakened on Thursday after the stock was removed from Bank of America’s list of top US investment ideas.

Palantir shares were trading at $134.58, down 0.59%, following news that the company had been dropped from the bank’s US 1 List.

The list represents Bank of America’s highest-conviction investment recommendations and includes a select group of stocks rated “Buy” by its analysts.

The removal weighed on sentiment, even as the bank reiterated its positive view on the company’s longer-term prospects.

Palantir stock still a 'buy'

Bank of America confirmed that while Palantir had been removed from the US 1 List, its fundamental rating remained unchanged.

“We are removing Palantir Technologies Inc. (PLTR) from the US 1 List. PLTR remains Buy-rated,” the bank said in a note to clients.

The move suggests that the decision may reflect portfolio positioning or valuation considerations rather than a deterioration in the company’s outlook.

Mizuho upgrade highlights improved risk-reward

Earlier in the week, Palantir received a more positive assessment from Mizuho Securities, which upgraded the stock.

In a research note on Wednesday, Mizuho analyst Gregg Moskowitz raised Palantir to Outperform from Neutral and set a price target of $195.

“We had for months stated a concern that PLTR shares could suddenly be subject to meaningful multiple reversion at some point,” Moskowitz wrote.

He said that the recent pullback in the stock appeared to have reduced valuation risks and improved the risk-reward balance.

According to Moskowitz, Palantir’s total revenue growth and margin expansion placed it “in a category of one” within the software sector.

Coming into Wednesday, Palantir shares had fallen more than 25% in 2026, compared with a 2.9% decline in the Nasdaq Composite.

AI exposure and broader software weakness

The recent slump reflects more than just valuation compression following the company’s strong rally in 2025.

Palantir has also been affected by a broader selloff in software stocks and cooling enthusiasm around artificial intelligence.

AI remains central to Palantir’s business model. The company’s analytics and surveillance software is powered by artificial intelligence, and its flagship AI Platform integrates large language models into enterprise data systems to automate workflows and decision-making processes.

Despite macroeconomic risks, Moskowitz said customer adoption remains encouraging.

“While PLTR is surely not immune to macro risk, rapid expansion into production environments suggests many customers are seeing clear [return on investments], undercutting the view that growth is driven by short-term AI hype,” he wrote.

Following Mizuho’s upgrade, Palantir is now rated Buy or Overweight by 17 firms tracked by FactSet.

Among the remaining analysts, 11 rate the stock at Hold and two recommend Sell.

Headquarters relocation to Miami

Separately, Palantir announced on Tuesday that it plans to move its headquarters to Miami from Denver, Colorado.

The company was founded in Palo Alto, California, and relocated its headquarters to Denver in 2020.

In its annual report, Palantir said it had 4,400 employees at the end of last year, with nearly 30% based in the United States.

The move aligns with a broader trend of companies shifting operations to Florida, citing regulatory and tax considerations.

Last month, D-Wave Quantum said it would relocate its headquarters to Boca Raton from Palo Alto.

Major technology companies, including Apple, Amazon, and Microsoft, have also expanded their presence in Miami in recent years.