Palantir Technologies Inc. (NASDAQ: PLTR) stock finished about 3% lower at the market close on June 6. The stock is up over 67% in 2025 and over 400% in the last 12 months, so a pullback at the all-time high isn’t unexpected.
However, the company is facing headwinds over concerns that its software will be used to create a surveillance state. This stems from the federal government’s announcement that it intends to use Palantir technology to consolidate federal data.
This sets up a clash between an irresistible force, represented by the Trump administration and its Department of Government Efficiency (DOGE), and an immovable object, namely concerns over civil rights and due process.
Investors need to consider whether Palantir is a hero, a villain, or merely a company with superior technology that’s caught in the middle.
Why the Government Wants to Streamline Operations
Broadly speaking, the case for Palantir stems from the government’s objectives to modernize operations, enhance public safety and security, identify fraud, and add efficiencies that could result in cost savings.
Palantir’s data analytics platforms, such as Gotham, are already being used throughout the federal government and have been credited with improving decision-making.
The government and Palantir support this claim by stating that Palantir’s platform enables agencies to share and act more efficiently on existing data, reducing the need for expanded surveillance.
Black Box Concerns Are Back on the Front Burner
Even before Palantir went public via a direct listing in 2020 (a fact that disturbed institutional investors), a primary concern about the company was that it was a black box.
Since its customers were exclusively in the federal government at that time, it was not easy to understand what Palantir did, how its software worked, and how it was being used. This was particularly true of its work with the Department of Defense (DoD).
Those concerns are being amplified again with words like “panopticon,” a centralized, all-seeing database, being used to describe what Palantir could become. Ironically, the name Palantir is derived from the all-powerful Palantiri in J.R.R. Tolkien’s TheLord of the Rings trilogy.
This has caused critics to raise concerns about privacy and civil liberties, risks of abuse and political targeting, lack of oversight and transparency, and the company’s own history of having its products used in controversial ways.
This Isn’t an All-or-Nothing Moment
At its core, this issue is less about Palantir’s technology and more about mistrust in who is using the technology. That’s been the case with Palantir even before it went public. The issue of privacy and civil liberties is impacting many technology stocks as the use of artificial intelligence (AI) expands.
An issue like this isn’t likely to go away anytime soon, and it may impact the stock price in the short term. However, a key takeaway for investors is that this isn’t an existential threat to the company’s business. Palantir will continue to grow both its government and, more importantly, its commercial operations regardless of the federal government’s decision in this matter.
Despite Concerns, a New Bottom May Have Formed for PLTR
A look at the 30-day chart for PLTR stock shows that a double-bottom pattern has formed around the $120 price level. That fits the bullish pattern of higher highs and higher lows in the last three months.
That said, investors should continue to expect volatility from Palantir stock. In addition to concerns over surveillance, many investors are still put off by the company’s lofty valuation, and it is lofty.
Another point to consider is that Palantir recently received another price target increase. This one came from fund manager Chris Versace, who raised his target from $130 to $140.
Some investors would say that analyst sentiment isn’t a good indicator of a company’s prospects.
However, at a time when retail investors are being admonished for treating PLTR like a meme stock, it’s important to note that institutions are raising their price targets for the stock.
That isn’t happening simply due to momentum. These analysts believe there’s more growth in store, but that growth may be slower than in the past two years. In the company’s first-quarter earnings report, it delivered 39% year-over-year (YOY) revenue growth. However, the company’s own estimates are guiding to 36% YOY revenue growth for full-year 2025.
A long-term investor must consider that. However, as the floor continues to move higher, the risk premium to hold the stock is decreasing.
Elon Musk has avoided two major financial crises before. He pulled Tesla and SpaceX back from the brink of collapse and built two of the most valuable companies in history.
Now, he’s sounding the alarm about America’s $36 trillion debt time bomb that could destroy the fabric of our society.As head of the Department of Government Efficiency (DOGE) under President Trump, Musk is exposing just how bad things are…
The implosion was caused by uncertainty surrounding the company’s primary revenue source, government spending.
Those fears, however, have proven to be unfounded, leaving the stock in a deep-value situation.
Down roughly 35% from their 2024 highs, the market confirmed its bottom following the Q1 2025 earnings release, and there are numerous reasons to expect a robust rebound over the coming quarters.
Among them are the company’s cash flow and capital return. At face value, the dividend is attractive enough with its 1.4% yield and 16% payout ratio, but the share buybacks compound it. The share buybacks are both aggressive and sustainable, with total capital return supported by a favorable free cash flow payout ratio.
The critical detail is that buybacks reduced the count by an average of 8.25% in FQ1 2026 and will sustain the pace through year’s end. The F2026 includes a forecast for roughly $375 million in buybacks, or about 7.6% of the market cap, with shares trading at long-term lows.
SAIC Falls After Solid Report, Cautious Guidance
Despite alleviating market fears and improving visibility, SAIC shares failed to retest their long-term lows following the Q1 release. The company generated $1.88 billion in net revenue, representing a 1.6% increase over last year, edging past the consensus figure slightly.
The growth is supported by new contract wins offset by completions, with internal metrics suggesting the guidance is cautious.
The only bad news is that margin contraction was worse than expected; however, there is a mitigating factor. Contract turnover and payment timing, some of which were delayed due to procedural or staffing changes at government agencies, impacted the figure. Adjusting for them, the margin and earnings were better than expected.
The guidance is good, and there is a high probability of outperformance. The company reiterated its outlook for 2.5% organic growth, with revenue expected to be $7.6 to $7.75 billion for the year. The guidance could be cautious due to the accelerating momentum in contract wins, the number of contracts awarded since the end of the quarter, and the favorable book-to-bill ratio. At 1.3, new business is growing at a 30% faster rate than completed projects, there are billions in unawarded but submitted contracts still in play, and the company plans to submit billions in additional proposals by the end of the year.
It is negligible regarding the impact of DOGE and government spending changes on the outlook. CEO Toni Townes-Whitley says the effects of DOGE are about 1%, but are offset by business wins and the outlook for government spending.
The budget proposal submitted by the White House aligns with the company’s growth trajectory and includes a focus on some of SAIC’s critical business segments, including the NAVY, Air Force, and Space Development Agency. The takeaway is that Science Applications International is well-positioned as a source of IT services and support.
Science Applications International Indicated 20% Higher by Analysts
The analysts’ response to SAIC’s results and guidance is mixed, but the trends favor higher share prices. MarketBeat tracked three revisions within the first few days of the release, including two price target reductions and one increase. The reductions place the market in the range of $100 to $120, aligning with the technical price floor and a roughly 20% upside.
Meanwhile, the increase is to $137, representing more than 30% upside from the early June lows. Together, their average aligns with the consensus, which forecasts a 20% increase and has been relatively stable for the last year. Regarding the trends, analysts’ coverage is increasing, and sentiment is improving, shifting from Reduce to Hold over the previous 12 months.
2025 is off to a turbulent start—markets are swinging wildly, inflation pressures remain high, and recession fears are creeping back into headlines.
But even in uncertain times, innovation doesn’t slow down.
In fact, artificial intelligence (AI) is accelerating faster than ever—creating new profit opportunities while the broader market struggles.
Our latest research reveals two AI stocks trading under $15 that could thrive even as volatility grows. These under-the-radar companies are positioned to ride the next wave of AI-driven demand—and they’re still flying below most investors’ radar.
The technology sector in the United States is a breeding ground for some of the most innovative companies in the world, especially now that advances in artificial intelligence have lowered the barrier of entry for new companies and delivered potential double-digit upside opportunities in the coming months and quarters. For this reason, a look at the smaller players is warranted.
By considering a stock like Unity Software Inc. (NYSE: U), investors have a significantly better risk-to-reward stance compared to larger, more established businesses that currently dominate the artificial intelligence market. It is inevitable that advancements in technology will allow competitors to catch up as a spillover effect, and that is where Unity Software (with a $10.4 billion market capitalization) comes into play for investors to consider.
Several bullish factors have emerged for Unity stock lately, and these are the ones any respectable investor would want to consider before investing capital in this idea.
From price action to product offerings and financials, this company has certainly justified some of the institutional positioning that will be covered in just a minute.
Unity Software’s Offer: Adoption Potential
This company’s focus is primarily on the development of 3D technology for video games and its engineers. However, a few entities quickly realized that this system could be replicated and leveraged for other efficient purposes. In fact, here’s where one of Unity’s software clients can become a testimonial for further success and adoption.
Dutch Airline KLM has employed Unity Software’s services in order to develop a 3D cockpit training program for its pilots, and that is exactly the sort of industrial application investors can expect more of down the line. By saving time, fuel, and resources and even eliminating any potential incidents during training, implementing this technology offers a new way for the airline industry to boost margins.
Deutsche Bahn, Germany’s national railway company, has also jumped on the bandwagon of developing training and operating models to increase efficiency during complex transit environments significantly. Regarding social benefits, reduced complexity, bottlenecks, and accidents should now serve as successful case studies, attracting more customers.
Of course, this opportunity is being recognized and already being taken advantage of by some Wall Street participants, indicating confidence that Unity Software’s stock could reach for higher prices.
Smart Money Likes Unity Software
Over the past quarter, a major player in the financial industry has decided to capitalize on the opportunity created by Unity Software stock. Allocators from the Vanguard Group increased their position in the stock by 5.9% as of early May 2025, bringing their stake to as high as $645.8 million.
Looking at this positioning in dollar terms is one thing; realizing that Vanguard now owns 7.9% of the entire companyis another. This level of ownership typically represents more than just confidence; it means that these institutions have access to stewardship roles in bringing Unity’s business up to its full potential.
That full potential would mean today’s price is a fraction of what it could be. The fact that Unity Software stock trades at 81% of its 52-week high today only means that bullish momentum is already on its side, and further upward moves will likely bring in further momentum buying from other institutions.
Rooted in Fundamentals
Regarding financials, these institutions are willing to be more exposed to Unity Software because investors can see a clear theme emerging from the company’s latest quarterly earnings results. A smaller technology company will typically report “noisy” financials, but here is one factor that can’t be misconstrued as easily.
In the cash flow statement, investors can see a massive jump from a net outflow of $7.3 million during the same quarter last year to a net operating cash flow of $13 million. What drove this jump is the big turnaround in the company’s accounts receivable flow.
In plain English, this shift likely means that new customer sign-ups are happening, indicating that KLM’s adoption is now a social cue for other entities to start adopting these product offerings from Unity. This new cash flow will likely translate into better bottom-line earnings per share (EPS) for the company.
Wall Street analysts have caught onto this fact, as they now forecast $0.05 in EPS for the third quarter of 2025, a massive jump from today’s reported net loss of $0.19 per share. Most investors know that where EPS goes, so does the stock price, and now the entire stage is set for Unity Software to deliver the payday those Vanguard buyers are looking for.
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