TLDR
- UBS named Palantir, AT&T and Spotify among its top technology, media and telecom stock picks.
- Palantir has lagged the market in 2026 despite strong revenue growth and wider operating margins.
- AT&T has trailed the S&P 500 but continues to benefit from its wireless and fiber position.
- Spotify shares are down this year, though UBS expects subscriber growth, price increases and margin expansion.
- The broader market ended the week mixed as the 10-year Treasury yield moved close to 5%.
UBS has named Palantir, AT&T and Spotify among its top stock picks across technology, media and telecommunications, even though all three have trailed the broader market in 2026.
The investment bank highlighted 14 companies in a research note, focusing on businesses with distinct growth drivers, lower valuations and exposure to trends such as artificial intelligence, cloud computing and digital services.
Palantir shares are down about 1.5% this year at roughly $175. The stock came under pressure earlier in 2026 as investors questioned whether newer AI models could weaken demand for software companies.
Palantir Technologies Inc., PLTR
UBS Sees Upside in Palantir and AT&T
Palantir’s valuation has also fallen sharply. The stock traded near 180 times projected 12-month earnings in January, but that multiple has since been cut roughly in half.
The company’s operating performance has remained strong. Palantir reported 93% year-over-year revenue growth in the second quarter.
Adjusted operating margins also climbed to 62% from 46% a year earlier.
UBS said demand for Palantir’s AI and automation software remains strong and that the company has seen limited competitive pressure from AI model providers or other data software firms.
The bank has a $250 price target on Palantir, compared with a recent share price near $175.
AT&T has also lagged the broader market, rising about 2.5% in 2026 to around $25.46.
By comparison, the S&P 500 has gained about 11.4% this year.
UBS sees AT&T benefiting from increased bundling across wireless and broadband services.
The company is already a major U.S. wireless and fiber operator and has continued investing in fiber while maintaining cash flow.
UBS said that gives AT&T room to continue share buybacks and maintain its dividend.
The bank has a $31 price target on AT&T, representing roughly 22% upside from recent levels.
Spotify Valuation Falls as Market Stays Uneven
Spotify has performed worse than the other two stocks this year, falling about 11% to roughly $519.
The streaming company continues to add subscribers, though its latest earnings were hurt by higher operating expenses.
UBS expects Spotify to convert more free users into paid subscribers, raise prices and expand further into products with higher margins, including audiobooks.
The stock trades at about 31 times projected earnings for the next 12 months, down from around 42 times at the start of the year.
UBS has set a $690 price target on Spotify.
The bank also named Amazon, Pinterest, Procore Technologies and Texas Instruments among its preferred technology stocks.
The broader market finished Friday mixed. The Nasdaq gained 0.4%, the S&P 500 added 0.2%, and the Dow fell 0.2%.
The 10-year Treasury yield moved close to 5% as traders increased expectations for another Federal Reserve rate increase in October.
Chip stocks recovered from losses earlier in the week, while oil prices eased below $100. Palantir, AT&T and Spotify remain among UBS’s selected stock picks as investors weigh earnings growth against higher interest rates.
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