Palantir Shares Receive Dual Boost Amid Persistent Skepticism

Palantir gets a Mizuho upgrade to Outperform and a favorable court ruling, but faces ongoing criticism from short-seller Michael Burry over governance and valuation.

Palantir Technologies Inc. concluded the week with significant support emerging from two distinct quarters. A U.S. court ruling has provided the data analytics firm with a legal victory in a dispute involving former employees, while simultaneously, Mizuho Securities upgraded its rating on the stock. However, these positive developments are counterbalanced by the continued bearish stance of a prominent investor.

Mizuho Upgrades on Growth and Margin Outlook

In a move that provided early momentum, Mizuho Securities revised its stance on Palantir from "Neutral" to "Outperform" on Wednesday. The firm established a price target of $195 per share. Analysts cited a perceived "unique" acceleration in revenue growth coupled with expanding margins as key operational levers that distinguish Palantir within the software sector.

A focal point of the upgrade was the performance of the U.S. commercial segment, which Mizuho reported grew 137% year-over-year in the fourth quarter of 2025. The research house also interpreted the stock's pullback from recent highs as a constructive re-rating that has improved the risk-reward profile. This assessment is partly attributed to sustained demand for the company's Artificial Intelligence Platform (AIP). Despite this optimistic view, market pressure remains evident, with the stock down 20.51% over a 30-day period.

Court Imposes Restrictions on Former Staff

Adding to the positive sentiment, a federal judge in New York issued a ruling on Thursday that partially favored Palantir. Judge J. Paul Oetken found that the founders of AI startup Percepta—who are former Palantir employees—likely violated confidentiality and non-solicitation agreements.

The court specifically ordered that these former employees are prohibited from recruiting current Palantir staff. This decision upheld Palantir's core argument that talent competition should not occur through illicit poaching. However, the judge denied a broader request from Palantir to completely enjoin Percepta and its founders from operating their business. The net effect is that Percepta may continue its work, but within clearer legal boundaries.

Short-Seller Burry Maintains Bearish Position

Despite these favorable impulses, a notable counter-narrative persists. Reports this week indicate that Michael Burry's Scion Asset Management continues to hold put options against Palantir. Burry's criticism primarily centers on governance concerns and valuation.

His arguments highlight issues such as corporate spending, noting that expenses related to CEO Alex Karp's use of the company jet reportedly rose to $17.2 million in 2025. He also focuses on the growth of accounts receivable relative to revenue, drawing valuation concerns from this metric.

The broader context includes notable market volatility in February. Following strong Q4 2025 results, which showed revenue of $1.4 billion—a 70% increase from the prior year—the stock initially surged but later relinquished those gains. Other operational developments, such as a confirmed partnership with Rackspace Technology to accelerate the deployment of AI solutions, have also been part of the recent narrative.

The critical factor for the coming weeks will be whether Palantir can sustain its demonstrated commercial momentum in the United States. The enduring question is if Mizuho's growth-and-margins thesis will ultimately outweigh the short-selling critique focused on governance and valuation.