Palantir’s strong Q1 has fueled a bullish Palantir stock forecast, with major institutional investors increasing their stakes.
Palantir Technologies Inc. (NASDAQ:PLTR) continues to impress Wall Street after its first-quarter earnings beat expectations. The data analytics company posted $884 million in revenue, surpassing analyst forecasts of $863 million. Adjusted earnings per share (EPS) landed at $0.13, reinforcing investor confidence. As a result, the Palantir stock forecast is gaining momentum, with the stock hitting a new all-time high on June 2.
This rally is also being supported by significant institutional activity. Five heavyweight investors—Vanguard, BlackRock (NYSE:BLK), State Street, Geode Capital, and Morgan Stanley (NYSE:MS)—together own nearly 25% of Palantir. Their recent moves provide valuable clues for retail investors wondering where PLTR is headed next.
1. Vanguard Remains the Largest Shareholder
Vanguard currently holds 198.5 million shares of Palantir, which accounts for 8.83% of the company. Although Vanguard trimmed its holdings by 10.36% in Q1, this reduction reflects routine index rebalancing—not a bearish shift. In fact, Palantir’s inclusion in the S&P 500 Index ($SPX) in September 2024 ensured that Vanguard’s passive funds had to acquire PLTR shares in bulk.
Vanguard’s significant stake means it retains influence over corporate decisions, including executive compensation and stock-based incentives. As Palantir’s valuation grows, Vanguard’s exposure may expand again, reinforcing a positive Palantir stock forecast.
2. BlackRock Increases Its Holdings in PLTR
BlackRock (NYSE:BLK), through its iShares ETFs like iShares Core S&P 500 ETF (NYSEARCA:IVV) and iShares Expanded Tech-Software ETF (NYSEARCA:IGV), owns 188.2 million PLTR shares, up 9.2% from Q4. That represents 8.37% of Palantir.
BlackRock’s mix of passive and active strategies is key. On the active side, BlackRock’s portfolio managers have shown increasing interest in AI-driven companies. Palantir’s Artificial Intelligence Platform (AIP), which converts small pilot programs into long-term government and commercial contracts, is making waves—and that’s getting BlackRock’s attention.
3. State Street Aligns with Market Momentum
State Street Global Advisors, which manages the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), owns 88.4 million shares, or 3.93% of Palantir. Its Q1 increase of 1.2% reflects Palantir’s growing weight within the S&P 500.
Because State Street manages numerous sector-specific SPDR funds, Palantir’s rising valuation means the firm will continue adding exposure as needed to match index allocations. For long-term investors watching institutional buying trends, this reinforces a bullish Palantir stock forecast.
4. Geode Capital Quietly Grows Its Stake
Geode Capital, a lesser-known but influential sub-advisor for Fidelity’s index products, has emerged as the fourth-largest PLTR shareholder. It now owns 55.4 million shares, representing 2.46% of the company. The firm boosted its position by 6.44% in Q1.
Geode’s accumulation aligns with its mandate to reflect market-cap-weighted benchmarks. As Palantir’s market cap increases, so does Geode’s interest—providing yet another tailwind to the optimistic Palantir stock forecast.
5. Morgan Stanley Shows Confidence in PLTR
Morgan Stanley (NYSE:MS) increased its Palantir holdings by 8.3% to 31.2 million shares, or 1.39% of the total float. The firm includes PLTR in both passive accounts and actively managed growth portfolios. Earlier this year, Morgan Stanley upgraded its rating on Palantir, citing robust U.S. government contracts and a rapidly expanding commercial client base.
This institutional endorsement likely influenced discretionary managers within Morgan Stanley to accumulate more PLTR shares ahead of its earnings report.
Outlook: What This Means for Investors
With Palantir outperforming expectations and gaining institutional support, the Palantir stock forecast appears increasingly bullish. The company’s success in converting AI pilots into long-term contracts positions it as a critical player in both the public and private sectors.
If this institutional momentum continues, retail investors may want to keep a close eye on Palantir stock. As heavyweight funds align behind the company, the long-term trend looks promising.
Bottom Line
Palantir (NASDAQ:PLTR) is earning renewed Wall Street confidence. As top institutions deepen their positions, the bullish Palantir stock forecast gains further traction.
Featured Image: Megapixl
