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Palantir Technologies (NASDAQ: PLTR) on Monday extended its current short-term rebound to trade at above $198, before pulling back slightly below $194. The data integration and analysis software provider’s stock is recovering following its surprise post-earnings dip, which saw it fall from its all-time highs of about 207 to trade at about $147.
From a wider perspective, Palantir stock has been on a bull run since November 2024, but is facing resistance at around the $194 level. On the lower level, the stock has established a strong support around $150.
The company has experienced strong growth in revenue in recent quarters, which saw it breach the $1 billion mark in Q3. This growth coincides with the accelerating adoption of AI amid advances in technology and the emergence of new use cases.
Palantir Stock Technical Analysis
Technically, Palantir’s recent rebound occurred around the 0.382 Fibonacci Retracement level at $154, which now acts as a support for the current short-term bullish momentum. The stock has also advanced to trade above the 0.236 Fib level, which coincides with the 100-day moving average, further supporting the current bullish momentum.
Since the beginning of its long-term bull run late last year, the PLTR stock has spent most of its time above the median line of Andrew’s Pitchfork, again demonstrating the strength of the current upward momentum.
The relative strength index also supports a bullish market sentiment, with the 14-day smoothed moving average oscillating mostly between 50 and 70 during the last seven months.
Post-Earnings Dip More About AI Bubble Fear than Palantir Outlook
Palantir reported its fiscal third-quarter results on November 3, 2025, beating analyst expectations.
Its top line for the quarter grew by 63% year-over-year to $1.18 billion, boosted by U.S. commercial revenue, which rose 121% YoY and 29% sequentially, to $397 million. Overall, the company reported a revenue growth of 77% YoY from the U.S., its biggest market, with $883 million.
The company said it closed a record $1.31 billion of U.S. commercial total contract value, up 342% YoY, while the U.S. commercial remaining deal value stood at $3.63 billion, up 199% YoY. This supports Palantir’s long-term top-line growth prospects. This may explain the stock’s current premium valuation as investors continue to bet on growth.
Palantir’s sustainable growth prospects are further supported by the company’s consistent performance as per Software-as-a-Service’s (SaaS) rule of 40 benchmark.
The rule combines a company’s revenue growth rate and the profit margin, with a score higher than 40% considered a signal for strong sustainable health. Palantir saw its figure rise to 114% in the most recent quarterly results, having outperformed the minimum requirement in each of the last eight quarters.
The company expects its top-line to continue growing in the fourth quarter, with projections of $1.327 - $1.331 billion. It also expects a significant sequential growth in income from operations to nearly $700 million, up from about $600 million in Q3.
Possible Risks
While Palantir’s strong fundamentals point towards a bright future, its valuation is a significant drawback for traditional value investors.
PLTR’s P/E ratio of about 455 is about 10x times higher than the P/E of Nvidia Corp (NASDAQ: NVDA), the biggest player in the industry, of 45. Even Broadcom’s (NASDAQ: AVGO) P/E of 71 and Advanced Micro Devices’ (NASDAQ: AMD) equivalent of 105 are at least multiple times lower than Palantir’s
The company also faces the same market risks AI stocks are exposed to, as demonstrated by its post-earnings decline in November.
With concerns growing that the current AI buzz is drawing parallels to the internet boom of the late 90s to early 2000s, there is the potential that the fear of history repeating itself could continue to weigh on AI stocks going into 2026.
Conclusion
In summary, while there are genuine concerns about a potential AI bubble brewing, Palantir seems to have at least locked in significant revenue for its immediate future, given the remaining deal value.
Its clientele base also includes government organisations and institutions, which are only beginning to implement various AI systems in their operations.
Therefore, given the company’s strong revenue growth prospects, and the supporting technical analysis, PLTR current rebound seems poised to continue, potentially breaching the key resistance at $194.