Palantir (PLTR) shares have been in a massive downtrend ahead of the company’s Q4 earnings, but options traders seem to believe they’ll rebound after the release on Feb. 2 after the bell. Analysts expect the artificial intelligence (AI) data analytics firm to report earnings of $0.17 a share for its fourth quarter — up more than 20% on a year-over-year basis.
At the time of writing, Palantir stock is down more than 25% versus its November high.
Options traders are currently pricing in an 8.67% move in PLTR stock through the end of this week, as per data from Barchart. That means the Nasdaq-listed firm could be trading at nearly $163 within days after its fourth-quarter release.
Additionally, longer-dated derivatives contracts are also skewed to the upside, with those expiring in mid-April suggesting a continued rally in Palantir Technologies to about $175.
Investors should also note that the AI stock’s standard relative strength index (14-day) sits at about 23 at the time of writing, signaling oversold conditions that often precede a sharp rebound.
Senior William Blair analyst Louie DiPalma agrees with options traders on Palantir shares.
According to DiPalma, the Denver-headquartered firm is seeing continued traction in both government and enterprise deals, which will drive strong results and ultimately lift the company’s share price in 2026.
DiPalma agreed that PLTR is expensive at about 191x forward earnings, but he also said the premium is defensible when compared to valuations other AI names secured in private market last year.
In his research note, the analyst said Palantir will exceed $200 a share over the next 12 months, indicating potential upside of at least 35% from here.
Interestingly, William Blair isn’t the only Wall Street firm predicting a sharp rebound in Palantir.
According to Barchart, the consensus rating remains at a “Hold,” but the mean target sits at about $202, reinforcing that PLTR shares could rally significantly through the remainder of 2026.
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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
