Over the weekend, I made the case that the latest wave of tariffs might actually help Goodyear. Why? Because unlike most automakers with deep supply chains in China, Goodyear is largely insulated. The company sources its materials and manufactures tires closer to home, which makes it less vulnerable to sudden policy changes or retaliatory tariffs.

But now another name is getting pulled into the “tariffs might not be so bad” conversation, a stock that doesn’t get the attention it deserves… I’m talking about Palantir (obviously I’m joking). Some analysts say the recent selloff in PLTR is a buying opportunity. Others say it’s still overpriced. I’m just trying to figure out if this is genuine optimism… or if a few analysts are just trying to pump their bags before the music stops.

Let’s get the obvious out of the way… Palantir stock has gotten rocked. After peaking at $125 in mid-February, it’s now down 32%, and at one point, it was flirting with a 40% drawdown. Remember, this is the same PLTR that was up 340% last year and led the S&P 500 like it had cheat codes.

Investors are skittish. Not just because of tariffs, but because the word “defense spending cuts” has been floating around like a bad smell in a windowless conference room. And when your client list is 60% government contracts and your business model is “We help the Pentagon think,” that’s… not ideal. Louie DiPalma (not to be confused with Danny DeVito’s character from Taxi) says this drop is actually a gift based on two words: Defense. Spending.

Trump just directed the Pentagon to reroute $50 billion toward “advanced military tech,” which includes drones, AI, and probably some stuff that sounds like it came from The Terminator. This is Palantir’s bread and butter. Their Gotham and Foundry platforms are built to power exactly this kind of “skynet-lite” activity.

Oh, and they’re also reportedly in line for a Next-Gen Command & Control contract from the Army, and Vantage (their current Army platform) isn’t going anywhere either. Even better (for this narrative), Palantir doesn’t give a single damn about China. They’ve historically avoided working with the Chinese market because, you know, data privacy and potential espionage and all that.

So when Beijing adds a 34% retaliatory tariff on American goods? Palantir shrugs. They don’t manufacture anything. They don’t ship containers. Their “product” is software, delivered at the speed of Wi-Fi. You can’t tariff code, baby.

In fact, the more chaotic the geopolitical landscape becomes (and let’s face it, we’re living in a Mad Libs version of global diplomacy right now) the more valuable Palantir’s platform becomes. Governments and multinationals are scrambling for clarity, coordination, and real-time decision-making. Palantir’s AI tools are designed for exactly that.

Think of it this way: if Goodyear is benefiting from tariffs by being uninvolved, Palantir is benefiting by being essential. Commercial revenue for Palantir was up 54% last year, and with more companies forced to pivot their logistics, sourcing, and compliance strategy thanks to trade wars, that number could go even higher.

Now all of that sounds good, but there’s still one problem… valuation. At 46x revenue and 132x earnings, Palantir’s stock is just crazy and makes it such a tough buy for me. So I wouldn’t say the analyst has lost his marbles… Palantir is one of the few tech stocks that genuinely thrives in geopolitical chaos. It has zero exposure to China, strong federal contracts, commercial momentum, and a product built for exactly the type of logistical nightmares tariffs are creating.

But it also has an insane valuation and a track record of huge jumps followed by huge dumps.

Stock.News does not have positions in companies mentioned.