Wall Street Diverges on Palantir and Amazon: Bullish on Tech Giant, Bearish on AI Play

Palantir Technologies (PLTR) and Amazon (AMZN) present a stark contrast in Wall Street sentiment despite both being tech-centric stocks. Palantir shares have surged 110% year-to-date, dwarfing Amazon's modest 7% gain. Yet analysts overwhelmingly favor the e-commerce giant, with a median price target suggesting 15% upside for AMZN versus 30% downside risk for PLTR.

The divergence stems from fundamental performance metrics. Palantir's Q1 results showed impressive 39% revenue growth and 62% earnings jump, driven by adoption of its artificial intelligence platform (AIP). However, concerns linger about sustainability as the company trades at 25x forward sales—a premium even by tech sector standards.

Amazon benefits from institutional confidence in its diversified revenue streams, including cloud computing and advertising segments that now contribute nearly 80% of operating income. The retail behemoth's scale provides margin stability that pure-play AI firms like Palantir struggle to match.