Palantir Technologies (NYSE:PLTR) and Walt Disney (NYSE:DIS) are among the most-discussed stocks on the social media platform Reddit. While these stocks are buzzing on Reddit, valuation concerns could cap the upside potential in PLTR stock. As for Disney, the company is taking steps to reaccelerate growth, and Wall Street analysts see significant upside potential in DIS stock.
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Against this backdrop, let’s delve into these trending Reddit stocks.
Is Palantir Stock a Buy, Hold, or Sell?
After an explosive year-to-date rally, Palantir stock sports a Hold consensus rating on TipRanks. Three out of 13 analysts who have recently rated the stock maintained a Buy rating. On the other side, five analysts recommend a Hold, and five suggest a Sell.
The rapid deployment of AI (artificial intelligence), Palantir’s experience and expertise in large language models and generative AI, and the launch of its AI platform led to a rally in its shares. Further, the company delivered improved financials, led by increased Commercial and Government revenues and demand for its new AI platform.
While Palantir is well-positioned to capitalize on AI opportunities, Monness analyst Brian White sees the company’s current valuation as “rich.” Further, the analyst remains concerned about government-related revenues and said that “revenue recognition from government-related contracts has proven lumpy.” Following PLTR’s Q2 earnings, White reiterated a Hold rating on the stock on August 8.
Notably, the company’s government-related contracts face uncertainties associated with the timing of contract expansions and renewals. Overall, though, Palantir stock has appreciated quite a bit, with the positives reflected in its share price. Further, the average PLTR stock price target of $15.05 shows a marginal downside potential from current levels.
Is DIS a Good Stock to Buy?
Disney stock has disappointed so far this year. However, the average DIS stock price target of $113.95 implies 26.4% upside potential from current levels. The company delivered better-than-expected Q3 earnings and is increasing the pricing of its streaming products, which could provide some respite to its shareholders. Also, its Parks and Experiences business showed improvement, which is encouraging.
Goldman Sachs analyst Brett Feldman reiterated a Buy recommendation on Disney stock on August 10. The analyst stated that the company’s Q3 results showed early progress toward its lengthy to-do list. Feldman emphasized Disney’s progress in attaining profitability for its Direct-to-Consumer segment, securing a reliable partner for ESPN, and improving profitability in the Parks business as positives.
Overall, Disney stock has 14 Buys, six Holds, and two Sell recommendations for a Moderate Buy consensus rating.
The Bottom Line
Palantir and Disney are trending on Reddit and have multiple growth drivers to support their future growth. However, Palantir stock has appreciated significantly in value, indicating that positives are priced in its stock price. On the other hand, Disney stock has underperformed the broader market this year. However, an improving operating performance and its focus on driving profitable growth support Disney’s bull case.
Further, analysts also favor Disney over Palantir, with the average price target implying higher upside potential from current levels.
