Palantir Technologies (PLTR) has joined Dubai Holding to create a new venture called Aither. The goal is to speed up the use of AI across the United Arab Emirates. The launch follows an 18-month partnership between the two companies that already tested Palantir’s software in real estate, finance, and hospitality units owned by Dubai Holding.
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The joint venture supports Dubai’s $8.7 trillion economic plan known as D33, which aims to lift the city’s digital growth over the next decade. It also comes just a day after Microsoft (MSFT) announced a $15.2 billion investment in cloud and AI projects in the country. Dubai Holding’s chief executive said the deal will help make Dubai a stronger technology hub, while Palantir’s chief executive, Alex Karp, said the company is proud to deepen its work in the region.
Earnings Growth and Market Reaction
The announcement followed Palantir’s latest quarterly report, which showed strong gains across its business. In the third quarter, the company’s revenue increased 63% year-over-year to $1.18 billion. U.S. commercial sales climbed 121%, showing steady demand from enterprise clients. Palantir also reported higher contract values and wider profit margins, reflecting improved efficiency across its operations.
Even so, investors reacted cautiously. After the earnings call, Palantir’s stock fell 7.94% to close at $190.74, while pre-market trading continued to slip even further. The drop came after a long rally that lifted shares about 150% since the start of the year. Some investors appear to be taking profits after the sharp rise, while others are questioning how long the company can keep up its fast growth pace.
Still, the company’s fundamentals remain steady. Palantir’s mix of government and private contracts gives it a broad base of customers, and the new Aither venture adds fresh potential in a fast-growing market. With AI adoption rising and global demand expanding, Palantir continues to strengthen its reach in both public and commercial sectors.
Is Palantir a Good Stock to Buy?
Despite Palantir’s ongoing rise, the sentiment on the Street is split with a Hold consensus rating. Out of 16 ratings issued, only three analysts rate it a Buy, while 11 rate it a Hold, and two rate it a Sell. The average PLTR stock price target stands at $185.20, implying a 2.90% downside from the current price.
