Defiance's New PLTZ ETF Lets You Double Down On A Drop in Palantir Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 06 2025
0mins
Should l Buy PLTR?
Source: Benzinga
Launch of PLTZ ETF: Defiance ETFs has introduced the PLTZ ETF, a leveraged inverse fund targeting Palantir Technologies Inc., allowing short sellers to profit from declines in the company's stock price with a goal of achieving -200% daily returns relative to Palantir's movements.
Political Controversy and Market Impact: Amidst renewed scrutiny over Palantir's government contracts and data practices, CEO Alex Karp defended the company against allegations of unlawful surveillance, potentially increasing interest in the PLTZ ETF among traders looking to capitalize on the volatility surrounding Palantir.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 135.680
Low
50.00
Averages
192.88
High
255.00
Current: 135.680
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Technologies Reports Strong 2025 Financial Growth
- Significant Revenue Growth: Palantir's total revenue for Q4 2025 increased by 70% year-over-year to $1.41 billion, with U.S. revenue rising 93% to $1.08 billion, indicating strong market performance and heightened client demand.
- Government Contract Expansion: The U.S. military's contract with Palantir could be worth up to $10 billion over the next decade, further solidifying Palantir's leadership in the defense sector while providing substantial revenue streams for the company.
- Commercial Product Success: Palantir's Artificial Intelligence Platform (AIP) achieved a 137% increase in U.S. commercial revenue in 2025, demonstrating rapid acceptance and demand for its products in the commercial market, thereby enhancing the company's competitive edge.
- Strong Financial Health: By the end of 2025, Palantir held $7.2 billion in cash and short-term U.S. Treasury securities, with total debt at just $229.3 million, showcasing the company's ability to maintain financial health while pursuing growth and expansion opportunities.
See More
Palantir Expands PFCS Forward Authorization for Enhanced Deployment Flexibility
- Authorization Expansion: Palantir's PFCS Forward has extended its existing provisional authorizations to include on-premises and edge deployments, utilizing a hardware-agnostic approach that streamlines the authorization process, significantly reducing the time for customers to achieve Authorization to Operate (ATO) and enhancing deployment flexibility.
- National Security Significance: This authorization underscores Palantir's strategic importance in providing cutting-edge technology solutions for national security missions, enabling its platforms to be deployed efficiently in diverse settings, from large-scale data centers to mobile environments, thereby enhancing operational resilience and survivability.
- Stock Technical Analysis: Currently, Palantir's stock is trading 12.3% below its 20-day simple moving average and 22.3% below its 100-day simple moving average, indicating a bearish trend in the short to medium term; however, shares have increased by 15.58% over the past 12 months, positioning closer to their 52-week highs than lows.
- Analyst Expectations: The stock carries a Hold rating with an average price forecast of $193.33, with recent analyst moves showing divergence as DA Davidson and UBS lowered their targets to $180.00 while Citigroup raised its target to $260.00, reflecting mixed outlooks among analysts.
See More
Palantir Stock Drops 4.93% Amid Bearish Sentiment
- Stock Volatility: Palantir Technologies closed at $129.13, down 4.93%, primarily influenced by investor Michael Burry's bearish outlook on the company and the broader AI cycle, reflecting market concerns over its premium valuation.
- Surge in Trading Volume: The trading volume reached 73.4 million shares, which is 61% above the three-month average of 45.6 million shares, indicating a significant increase in market interest in Palantir's stock despite the price decline.
- Strong Performance: Despite facing pressure, Palantir's fourth-quarter revenue increased by 70% year-over-year, with U.S. commercial revenue soaring by 137%, demonstrating robust demand for its AI platforms among enterprise and government clients, while management's guidance exceeded Wall Street expectations.
- Future Outlook: Recent upgrades from HSBC and Northland Securities highlight the potential for sustained growth, but the market's cautious stance on future returns suggests that Palantir's outlook will depend on whether its commercial momentum and margin expansion can justify its current high valuation.
See More
Palantir Stock Drops Following Bearish Prediction by Investor Michael Burry
- Stock Decline: Palantir Technologies saw its stock drop as much as 6.7% on Thursday, with a 5% decline still noted by 2:00 p.m. ET, reflecting market concerns about its future performance.
- Investor Prediction: Notable investor Michael Burry released a 10,000-word thesis predicting a potential 66% drop in Palantir's stock price to around $46, although he presented various scenarios, his overall outlook remained bearish.
- Analyst Perspective: Analysts at D.A. Davidson reaffirmed their neutral rating and $180 price target for Palantir, asserting that Burry's article lacked new evidence to alter their view, emphasizing the company's growth and strong cash flow.
- Valuation Debate: Despite Palantir's high price-to-earnings ratio of 202, analysts questioned Burry's stance, arguing that the company's ability to grow rapidly while maintaining high cash flow margins indicates the sustainability of its business model.
See More
AI Investment Sparks Market Turbulence
- Market Concerns Intensify: Amazon's announcement of a $200 billion investment in AI-related capital expenditures by 2026 has led to a 9% decline in its stock year-to-date, reflecting investor worries about excessive AI spending potentially impacting future profitability.
- Microsoft's Earnings Reaction: Despite reporting a 17% year-over-year revenue increase and a 21% rise in operating income, Microsoft's stock fell 17% due to concerns over its plan to spend over $100 billion on capex this year, indicating market skepticism about its AI investments.
- SaaS Sector Struggles: Software companies like Salesforce and Adobe have seen significant stock price declines as investors fear that advancements in AI will severely disrupt the enterprise software industry, leading to a phenomenon dubbed the
See More
AI Stocks Decline Amid Spending Concerns
- Investor Concerns: Major AI and software stocks have declined year-to-date due to worries about AI spending and industry disruption, with Amazon and Microsoft seeing stock drops of approximately 9% and 17%, respectively, reflecting market skepticism about their planned capital expenditures of $200 billion and $100 billion.
- SaaS Industry Crisis: As AI technology advances, investors are increasingly anxious about the future of software-as-a-service (SaaS) companies, with some labeling the situation as the 'SaaSpocalypse,' leading to significant declines in stocks like Salesforce and Adobe, indicating concerns over traditional software profitability.
- ETF Investment Opportunity: Investors can consider buying the iShares Expanded Tech-Software ETF to capitalize on a potential rebound in software company share prices, which includes 114 North American software firms and has delivered an average annual return of 10.4%, despite a P/E ratio of 35.2, slightly above the Nasdaq-100's 32.4.
- Uncertain Industry Outlook: Despite industry insiders like Nvidia CEO Jensen Huang opposing the 'SaaSpocalypse' narrative, asserting that AI will not fully replace software, the ongoing sell-off in software stocks continues, prompting investors to carefully evaluate future investment opportunities.
See More
Palantir Technologies Reports Strong 2025 Financial Growth
- Significant Revenue Growth: Palantir's total revenue for Q4 2025 increased by 70% year-over-year to $1.41 billion, with U.S. revenue rising 93% to $1.08 billion, indicating strong market performance and heightened client demand.
- Government Contract Expansion: The U.S. military's contract with Palantir could be worth up to $10 billion over the next decade, further solidifying Palantir's leadership in the defense sector while providing substantial revenue streams for the company.
- Commercial Product Success: Palantir's Artificial Intelligence Platform (AIP) achieved a 137% increase in U.S. commercial revenue in 2025, demonstrating rapid acceptance and demand for its products in the commercial market, thereby enhancing the company's competitive edge.
- Strong Financial Health: By the end of 2025, Palantir held $7.2 billion in cash and short-term U.S. Treasury securities, with total debt at just $229.3 million, showcasing the company's ability to maintain financial health while pursuing growth and expansion opportunities.
See More
Palantir Expands PFCS Forward Authorization for Enhanced Deployment Flexibility
- Authorization Expansion: Palantir's PFCS Forward has extended its existing provisional authorizations to include on-premises and edge deployments, utilizing a hardware-agnostic approach that streamlines the authorization process, significantly reducing the time for customers to achieve Authorization to Operate (ATO) and enhancing deployment flexibility.
- National Security Significance: This authorization underscores Palantir's strategic importance in providing cutting-edge technology solutions for national security missions, enabling its platforms to be deployed efficiently in diverse settings, from large-scale data centers to mobile environments, thereby enhancing operational resilience and survivability.
- Stock Technical Analysis: Currently, Palantir's stock is trading 12.3% below its 20-day simple moving average and 22.3% below its 100-day simple moving average, indicating a bearish trend in the short to medium term; however, shares have increased by 15.58% over the past 12 months, positioning closer to their 52-week highs than lows.
- Analyst Expectations: The stock carries a Hold rating with an average price forecast of $193.33, with recent analyst moves showing divergence as DA Davidson and UBS lowered their targets to $180.00 while Citigroup raised its target to $260.00, reflecting mixed outlooks among analysts.
See More
Palantir Stock Drops 4.93% Amid Bearish Sentiment
- Stock Volatility: Palantir Technologies closed at $129.13, down 4.93%, primarily influenced by investor Michael Burry's bearish outlook on the company and the broader AI cycle, reflecting market concerns over its premium valuation.
- Surge in Trading Volume: The trading volume reached 73.4 million shares, which is 61% above the three-month average of 45.6 million shares, indicating a significant increase in market interest in Palantir's stock despite the price decline.
- Strong Performance: Despite facing pressure, Palantir's fourth-quarter revenue increased by 70% year-over-year, with U.S. commercial revenue soaring by 137%, demonstrating robust demand for its AI platforms among enterprise and government clients, while management's guidance exceeded Wall Street expectations.
- Future Outlook: Recent upgrades from HSBC and Northland Securities highlight the potential for sustained growth, but the market's cautious stance on future returns suggests that Palantir's outlook will depend on whether its commercial momentum and margin expansion can justify its current high valuation.
See More
Palantir Stock Drops Following Bearish Prediction by Investor Michael Burry
- Stock Decline: Palantir Technologies saw its stock drop as much as 6.7% on Thursday, with a 5% decline still noted by 2:00 p.m. ET, reflecting market concerns about its future performance.
- Investor Prediction: Notable investor Michael Burry released a 10,000-word thesis predicting a potential 66% drop in Palantir's stock price to around $46, although he presented various scenarios, his overall outlook remained bearish.
- Analyst Perspective: Analysts at D.A. Davidson reaffirmed their neutral rating and $180 price target for Palantir, asserting that Burry's article lacked new evidence to alter their view, emphasizing the company's growth and strong cash flow.
- Valuation Debate: Despite Palantir's high price-to-earnings ratio of 202, analysts questioned Burry's stance, arguing that the company's ability to grow rapidly while maintaining high cash flow margins indicates the sustainability of its business model.
See More
AI Investment Sparks Market Turbulence
- Market Concerns Intensify: Amazon's announcement of a $200 billion investment in AI-related capital expenditures by 2026 has led to a 9% decline in its stock year-to-date, reflecting investor worries about excessive AI spending potentially impacting future profitability.
- Microsoft's Earnings Reaction: Despite reporting a 17% year-over-year revenue increase and a 21% rise in operating income, Microsoft's stock fell 17% due to concerns over its plan to spend over $100 billion on capex this year, indicating market skepticism about its AI investments.
- SaaS Sector Struggles: Software companies like Salesforce and Adobe have seen significant stock price declines as investors fear that advancements in AI will severely disrupt the enterprise software industry, leading to a phenomenon dubbed the
See More
AI Stocks Decline Amid Spending Concerns
- Investor Concerns: Major AI and software stocks have declined year-to-date due to worries about AI spending and industry disruption, with Amazon and Microsoft seeing stock drops of approximately 9% and 17%, respectively, reflecting market skepticism about their planned capital expenditures of $200 billion and $100 billion.
- SaaS Industry Crisis: As AI technology advances, investors are increasingly anxious about the future of software-as-a-service (SaaS) companies, with some labeling the situation as the 'SaaSpocalypse,' leading to significant declines in stocks like Salesforce and Adobe, indicating concerns over traditional software profitability.
- ETF Investment Opportunity: Investors can consider buying the iShares Expanded Tech-Software ETF to capitalize on a potential rebound in software company share prices, which includes 114 North American software firms and has delivered an average annual return of 10.4%, despite a P/E ratio of 35.2, slightly above the Nasdaq-100's 32.4.
- Uncertain Industry Outlook: Despite industry insiders like Nvidia CEO Jensen Huang opposing the 'SaaSpocalypse' narrative, asserting that AI will not fully replace software, the ongoing sell-off in software stocks continues, prompting investors to carefully evaluate future investment opportunities.
See More
