Palantir Stock In Spotlight Following Reports Of Investment In Drone Startup, Muted Analyst Commentary: Retail Remains On Sidelines

Artificial Intelligence (AI)-powered data analytics company Palantir Technologies, Inc. (PLTR) stock could be in the spotlight in Friday’s session as investors digest rumors of a potential investment in a drone startup and a muted stock commentary issued by Cantor Fitzgerald.

Denver, Colorado-based Palantir is in talks to participate in a new funding round by defense technology company Shield AI, a Financial Times report said. Shield AI, based in San Diego, California, has embarked on building AI pilot, named Hivermind, the MQ-35 V-Bat vertical takeoff and landing (VTOL) drone and three quadcopters. 

Shield AI is reportedly looking to raise about $200 million through the fresh funding round, nearly doubling its valuation to $5 billion. The report named Palantir, Airbus SE ($EADSY), and L3Harris Technologies, Inc. ($LHX) as well as venture capital firms Andreessen Horowitz, Point72 and Riot Ventures as potential investors in the funding round.

In late December, a separate FT report said Palantir and privately held defense technology company Anduril were in talks with other industry players to form a consortium to bid for Pentagon contracts jointly. The planned consortium was to aim for a slice of the U.S. government’s $850 billion defense budget.

Separately, Cantor Fitzgerald initiated coverage of Palantir stock with a Neutral rating and $72, TheFly reported. The price target suggests upside potential of merely 4%.

Palantir stock was a high-flier in 2024, advancing 340%, but the rally has since then cooled off. The stock has shed over 18% since hitting an all-time high of $84.80 on Dec. 24.

PLTR sentiment and message volume January 16, 2025, as of 10:23 pm ET | Source: Stocktwits

On Stocktwits, retail sentiment toward Palantir has stayed ‘neutral’ (48/100), with message volume remaining at ‘normal’ levels.

A retail watcher of the stock said they were cashing out for now as the stock is potentially headed toward the $64 area.

But some harbor hope that the stock will take another leg up after Monday’s inauguration day and urged traders to add to positions before the event.

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