Palantir stock price forecast short interest in Palantir has dropped

Short interest in Palantir has dropped 15% over the last month, strengthening the palantir stock price forecast. This declining bearish pressure improves the probability of a sustained uptrend toward $29 before next earnings. The company's recent results clearly indicate that it is missing the AI software opportunity. Its revenue was down by 18% on a year-over-year basis to $32.5 million. The gross margin shrank as well, which explains why its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss more than doubled to $8.5 million in Q2. A far more reasonable valuation for Palantir to trade at is 40 times forward earnings. If the above projections came true and Palantir's stock traded at that level, it would have a stock price of about $68. That's a far cry from today's $179 price. A deep dive into company earnings supports the palantir stock price forecast, with gross margins consistently above 78%. Such profitability metrics suggest underlying pricing power, boosting investor confidence in a valuation rerating.