Unsurprisingly, Palantir’s stock has been on a sizzling hot streak. Shares of the artificial intelligence (AI) software company skyrocketed 135% last year. However, Wall Street expects Palantir’s stock to stall in 2026 but has great expectations for another AI stock.<\/p>\n
![\"Palantir](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1768153268_571_.png\"\/)
<\/p>\n
Today’s Change<\/p>\n
(0.36%) $0.63<\/p>\n
Current Price<\/p>\n
$177.49<\/p>\n
Key Data Points<\/p>\n
Market Cap<\/p>\n
$423B<\/p>\n
Day’s Range<\/p>\n
$174.75 – $178.71<\/p>\n
52wk Range<\/p>\n
$63.40 – $207.52<\/p>\n
Volume<\/p>\n
1.1M<\/p>\n
Avg Vol<\/p>\n
46M<\/p>\n
Gross Margin<\/p>\n
80.81%<\/p>\n
Why Wall Street isn’t all aboard the Palantir train<\/p>\n
The consensus 12-month price target<\/a> for Palantir reflects a potential upside of a low single-digit percentage. Of the 25 analysts who cover the stock that S&P Global surveyed (SPGI<\/a> +0.07%) in January, only four recommended buying Palantir.<\/p>\n Many retail investors remain all aboard the Palantir train. Why isn’t Wall Street on board as well? The simplest (and, I’d argue, best) answer is concern about valuation.<\/p>\n Analyst reports that I’ve read don’t knock Palantir’s business. They have no reason to do so. There’s little to complain about. Palantir’s Rule of 40 score<\/a> of 114% is in a league of its own. The company continues to win new customers, both in the government sector and the private sector, at an impressive rate. <\/p>\n However, Palantir’s valuation is a different story. The AI software company’s forward price-to-earnings ratio<\/a> is slightly below 182. Only one member of the S&P 500 (^GSPC<\/a> +0.65%) has a higher forward earnings multiple \u2013 Tesla (TSLA<\/a> +2.06%). <\/p>\n Image source: Getty Images.<\/p>\n Another AI stock analysts predict will soar 40% this year.<\/p>\n On the other hand, Wall Street is decidedly bullish about German enterprise resource planning software company SAP (SAP<\/a> +2.52%). The average 12-month price target for the stock is roughly 40% higher than the current share price. Of the 15 analysts surveyed by S&P Global who cover SAP, 12 rated the stock as a “buy” or a “strong buy.”<\/p>\n SAP doesn’t receive nearly as much AI hype as Palantir. However, the company is investing heavily in AI. For example, it has integrated agentic AI<\/a> into its platform and operates a sovereign AI cloud for the European Union. <\/p>\n Today’s Change<\/p>\n (2.52%) $6.08<\/p>\n Current Price<\/p>\n $247.11<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $281B<\/p>\n Day’s Range<\/p>\n $243.66 – $248.14<\/p>\n 52wk Range<\/p>\n $233.51 – $313.28<\/p>\n Volume<\/p>\n 84K<\/p>\n Avg Vol<\/p>\n 1.4M<\/p>\n Gross Margin<\/p>\n 73.82%<\/p>\n Dividend Yield<\/p>\n 1.06%<\/p>\n Why do analysts seem to like SAP so much more than Palantir? Again, the answer boils down mainly to valuation. Granted, the stock doesn’t appear to be a bargain at first glance. SAP’s forward earnings multiple is 28.5. <\/p>\n But analysts factor expected growth into the valuation calculations. SAP’s price-to-earnings-to-growth (PEG) ratio<\/a> is exactly 1.0 right now. This indicates a reasonably attractive valuation for a growth stock. In case you’re wondering, Palantir’s PEG ratio is nearly 2.9, which isn’t attractive.<\/p>\n Is Wall Street right about Palantir and SAP?<\/p>\n Palantir’s Karp believes that analysts and other Palantir skeptics are mistaken. He wrote in his November 2025 letter to shareholders: <\/p>\n Some of our detractors have been left in a kind of deranged and self-destructive befuddlement. It has indeed been difficult for outsiders to appraise our business, either its significance in shaping our current geopolitics or its value in the vulgar, financial sense.<\/p>\n I wouldn’t characterize any Wall Street analyst who has express reservations about Palantir as being in a “deranged and self-destructive befuddlement.” However, Karp is probably correct that his company’s robust growth has made it difficult to assess its intrinsic value<\/a>. That said, I suspect that the majority of analysts who expect Palantir’s momentum will stall in 2026 are right. <\/p>\n Are the analysts who are bullish about SAP also right? I have no idea if the stock will soar 40% over the next 12 months. But I predict that SAP’s shareholders will enjoy a better year in 2026 than they did in 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"Analysts prefer an AI stock in the new year that doesn’t receive nearly as much attention as Palantir.…\n","protected":false},"author":2,"featured_media":232928,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":{"0":"post-232927","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-il","12":"tag-israel","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/232927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=232927"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/232927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/232928"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=232927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=232927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=232927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"A](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1768153269_403_.jpeg\"\/)
<\/p>\n![\"SAP](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1768153269_976_.png\"\/)
<\/p>\n