Palantir Technologies stock has been sliding along with the rest of the software sector amid fears about Anthropic’s new artificial-intelligence model. That’s an overblown concern, according to Wedbush analysts—and they were backed up by President Donald Trump.
The analytics company was down 1.9% to $128.06 on Friday after falling more than 7% on Thursday. Stocks across the software sector have tumbled on worries about Anthropic’s Mythos AI model—which is supposedly so capable that the company has deemed it too dangerous to release to the public and is restricted to corporate previews.
The move added to an unusual streak of poor performance for Palantir, which has been an AI darling of traders. The stock has slumped 38% from its record closing high, reached in early November.
Not even President Trump could give the shares a life on Friday. “Palantir Technologies (PLTR) has proven to have great war fighting capabilities and equipment. Just ask our enemies!!!,” Trump posted on Truth Social.
He wasn’t the only one defending Palantir on Friday. While Palantir’s high valuation has attracted skeptics including short seller Michael Burry— the Big Short posted that Anthropic was “eating Palantir’s lunch” in a deleted social-media post Thursday—Wedbush’s Dan Ives called that a “fictional narrative.” He cited three factors when making his case: Palantir’s “Ontology” architecture, which maps data to real-world objects, its accelerating number and size of deals, and the scale of its work across commercial and government sectors.
“The data driven moat by Palantir is around the data and its ontology…this is NOT being disrupted by [Anthropic’s AI] Claude,” Ives wrote.
Ives maintained an Outperform rating and $230 target price on Palantir.
While Ives is a noted bull on technology stocks, in this case he’s in line with the Wall Street consensus.
“Not a single Palantir customer or partner has cited any real risk from Claude models being used to DIY an equivalent of Palantir, likely because the data mapping and decision-making in Palantir is very sophisticated,” wrote UBS analyst Karl Keirstead in a recent research note.
Keirstead has a Buy rating and $200 target price on Palantir.
