Palantir Stock Plummets Amid AI Hype and Valuation Concerns

Palantir stock plummets 20% from highs in longest losing streak since April 2024

Jeffries Brent Thill: Downward pressure on Palantir in part due to tech pullback Palantir shares sank into bear market territory Wednesday after six-straight days of heavy selling. The slide marks the longest such streak for the artificial intelligence software company since April 2024, and brings shares down 20% from the recent record. Shares closed in correction territory on Tuesday after accumulating a 15% loss from the highs. Palantir's slide followed a broader market selloff and came on the heels of a short-seller report from Andrew Left's Citron Research. He called the company "detached from fundamentals and analysis" and said shares should be priced at $40 if compared to the same price-to-revenue multiple in OpenAI's recent $500 billion valuation. "Karp and his team should be proud. But for investors, that's where discipline kicks in," Left wrote. "Comparison is the enemy of happiness, and when measured against true AI leaders, Palantir's price already reflects success beyond its fundamentals."

Palantir, the Top-Performing Stock of 2025, Is Suddenly Falling

No stock has kept up with Palantir in 2025. Not even Nvidia. Yet shares of Palantir have fallen for five trading days in a row, dropping more than 9 percent Tuesday to erase $75 billion in total over the last week. The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech and a short seller's critique. On Monday, Citron Research published a scathing report on Palantir, saying that even if the defense name traded at $40 -- 75 percent below current levels -- it would still be "expensive" relative to history. Citron's case hinges on OpenAI's recent $500 billion valuation and projected revenue of $29.6 billion for 2026. Applying that lofty price-to-sales multiple of about 17x to Palantir's projected 2026 revenue of $5.6 billion would yield a stock worth about $40, according to the report. OpenAI offers a "true subscription model that Wall Street loves," Citron wrote. "In contrast, Palantir relies on large, long-term government contracts and competes in the enterprise space with lumpy, less scalable revenue." That divergence underscores why Palantir has become ground zero for the pullback in tech stocks. It's up 385 percent over the last year -- far beyond the returns of the Magnificent 7 -- and that outperformance has left little margin for softening sentiment. And while leadership in the S&P 500 remains narrow, the last week has ushered in more signs of broadening. Healthcare, homebuilders, and defensive sectors have rallied over the last week, while the Nasdaq and chip names like Nvidia, AMD, and Meta have declined. That rotation is unfolding while Palantir's valuation appears out of touch with its fundamentals, in Citron's view. Meanwhile, the firm pointed to CEO Alex Karp selling nearly $2 billion in stock over the last two years. That, Citron said, runs counter to what Elon Musk did from 2012 to 2020 during Tesla's meteoric rise -- not only did he buy additional stock, he poured billions of his personal fortune into the EV maker. Now, it's still possible Palantir is simply taking a hit from a maturing AI trade. After all, other stocks within this theme have pulled back in recent days, too. Plus, the macro backdrop is a mixed bag -- imminent Fed rate cuts, historic US debt, outperformance by non-US equities, geopolitical and trade uncertainty -- and investors in search of diversification are fueling broader market breadth. To be clear, AI remains the defining theme of this market. But Palantir's slide serves as a reminder that even the trade's biggest winners must convince investors its fundamentals match the narrative.

Palantir keeps sinking, 12% off highs -- is PLTR's fifth straight loss an AI test or the first crack?

Palantir stock is sliding again, down 12% from recent highs after five straight sessions of losses. The latest retreat comes even after the company delivered a blockbuster Q2 2025 earnings report that beat both revenue and profit expectations. On Tuesday, Palantir Technologies Inc. (NASDAQ: PLTR) fell 6.2% to close at $163.23, leaving traders torn between optimism over its AI growth story and anxiety over whether the stock has run too far, too fast. The paradox is striking. Palantir reported $1.004 billion in Q2 revenue, ahead of Wall Street's $987 million forecast, with earnings per share of $0.16 versus $0.14 expected. Growth was broad-based, spanning both government contracts and commercial clients. CEO Alex Karp was quick to highlight the milestone, saying skeptics had been "bent into a kind of submission." ALSO READ: VKTX stock tumbles 29% today -- Viking Therapeutics weight-loss trial results fuel massive investor sell-off and market jitters Yet the stock market didn't cheer. Instead, Palantir shares extended their decline. Why? Because investors are wrestling with lofty valuations, AI hype fatigue, and concentration risk. Citron Research's Andrew Left has been one of the most vocal critics. He argues Palantir's story is "overhyped" and that its valuation pales compared to true AI leaders like OpenAI. Citron has warned of a potential 50-66% correction, even while acknowledging the company's operational strength. That kind of commentary, combined with profit-taking after months of gains, has added selling pressure. Beyond Palantir's own story, macro forces are playing a role. Investors are closely watching the Federal Reserve's tone ahead of the Jackson Hole symposium, alongside rising volatility across tech. Palantir's streak of five consecutive daily losses has dragged it back from its record highs, showing just how fragile sentiment can be when valuations stretch. Palantir reported $1.004 billion in revenue for Q2, beating analyst expectations of $987 million. EPS came in at $0.16 versus the forecast of $0.14, and growth was strong across both government and commercial segments. CEO Alex Karp hailed the results, noting that skeptics "have been bent into a kind of submission." Yet, while financial performance is solid, over 50% of Palantir's revenue still comes from government contracts, highlighting both stability and concentration risk. Analysts caution that any disruption in government spending, regulatory changes, or geopolitical events could have an outsized impact on earnings. Palantir's stock has rallied over 140% in 2025, yet its multiples are staggering. Depending on the source, the price-to-sales ratio ranges from 80x to 155x, while the forward P/E spans 290x to 700x. Short-seller Andrew Left of Citron Research emphasizes that these levels are exceptionally high, even in a bullish market. "The market has overhyped Palantir's AI story," Left notes, suggesting the company's true valuation pales in comparison to a pure AI leader like OpenAI. Extreme valuations like these leave little margin for error and make the stock vulnerable to sharp corrections if market sentiment shifts. Palantir has positioned itself as a major player in AI-driven analytics, attracting attention in a sector flush with excitement. But analysts warn that expectations may be outpacing reality. Citron Research, for instance, suggests a potential correction of 50-66% despite Palantir's strong fundamentals. The concern is that much of the stock's momentum is driven more by AI hype than sustainable earnings growth, leaving investors exposed if optimism fades. Beyond company-specific concerns, Palantir is being buffeted by broader market dynamics. The stock has slid for multiple sessions, extending a five-day decline despite holding above recent breakout levels. Investors are monitoring macro triggers such as the Fed's Jackson Hole remarks and rising market volatility. Meanwhile, profit-taking and short-seller commentary have added pressure. Some traders are wary that Palantir's recent surge may be peaking, while others see it as a potential entry point for long-term growth in AI. Palantir's situation illustrates the delicate balance between innovation-driven growth and valuation risk. Key takeaways include: Investors must weigh the company's undeniable strengths -- strong revenue growth, AI innovation, and commercial expansion -- against the equally undeniable risks of overvaluation and hype-driven sentiment. Q1: Why is Palantir stock dropping today? A1: Palantir stock is falling due to AI hype, sky-high valuations, and investor caution over government contract reliance. Q2: Is Palantir a good investment now? A2: Palantir shows strong Q2 growth, but high valuations and market uncertainty make it risky for new investors.

Palantir stock falls 9% as tech and AI shares drop amid market shift

Palantir shares fell after a report said the stock is too expensive. The company made $1 billion in revenue this quarter and expects more growth this year. Other tech and AI stocks like NVIDIA, Meta, and Coinbase also dropped. Experts say the market is shifting from Big Tech to sectors like Health Care and Homebuilders. Palantir shares fell 9% on Tuesday to $157.91, wiping out gains from its recent strong earnings report and full-year guidance boost. The stock has dropped for five straight days, losing 15.5% since August 13. Analysts and multiple outlets linked Palantir's fall to a Citron Research report saying the stock is overvalued, as per reports Citron compared Palantir to OpenAI, which is valued at $500 billion, and said that if OpenAI's price-to-sales ratio applied to Palantir, its stock would fall to $40 per share. Palantir reported $1 billion in revenue this quarter, the first time it has crossed the milestone, as reported by Forbes. Palantir shares had risen over 150% from their April low, driven by strong AI tools and earnings. The company secured a $10 billion deal with the U.S. Army, consolidating 75 contracts into one agreement. Palantir expects full-year revenues of $4.14 billion to $4.15 billion, up from the previous estimate of $3.89 billion to $3.90 billion, as mentioned in the reports. The Trump administration's push for AI and chip infrastructure in the U.S. is boosting companies like Palantir, NVIDIA, Apple, OpenAI, and Intel. Other tech stocks also fell Tuesday, NVIDIA down 3%, Meta down nearly 2%, and the Nasdaq down 1.4%. Cryptocurrency stocks slid too: Coinbase fell nearly 5%, Robinhood more than 5%, and Bitcoin dropped 2.4% amid a two-day crypto pullback, as stated by Forbes. ALSO READ: Apple may unveil shocking AirPods Pro 2 upgrade alongside iPhone 17 Palantir's five-day losing streak is its longest since March. Citron founder Andrew Left called their $40 price target for Palantir "generous". The Technology Select Sector SPDR Fund (XLK), tracking tech stocks, fell 1.7% Tuesday. Other AI and tech names saw losses: NVIDIA down 3.5%, AMD down 5%, and Meta down 2%. The tech sector overall lost more than 2.4% over the past five sessions, as per the Yahoo Finance report. The broader market rally is shifting toward sectors beyond Big Tech, like Health Care, Homebuilders, and small/mid-cap stocks, which rose 4% and 3% respectively in the last five days. Defensive sectors such as Real Estate, Utilities, Materials, Consumer Staples, and Health Care were the biggest gainers on Tuesday. Because Big Tech has a large weight in indexes, S&P 500 gains are less sharp when tech underperforms; Tuesday, the S&P 500 fell over 0.5%, and the Nasdaq nearly 1.5%. Citi strategist Scott Chronert said the market is on "two parallel paths": AI growth giants continue leading, while traditional sectors are adding stability, creating a healthier market setup. Chronert added that the "healthiest path" for the S&P 500 is a mix of continued tech growth and broader sector support, as per Yahoo Finance. Q1. Why did Palantir stock fall recently? Palantir stock fell due to a Citron Research report calling it overvalued and overall tech market losses. Q2. How much revenue did Palantir make this quarter? Palantir reported $1 billion in revenue this quarter, the first time it crossed this milestone.

Palantir Short Seller Andrew Left's Citron Now Compares It To Databricks: 'PLTR Is A $40 Stock, And Every Real AI Leader Keeps Reminding Us' - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Palantir Technologies (NASDAQ:PLTR)

Short-seller Andrew Left's Citron Research intensified its campaign against Palantir Technologies Inc. PLTR on Wednesday, posting a direct comparison to private competitor Databricks that highlights Palantir's slower growth on several key metrics. Palantir Versus Databricks: Is PLTR Accurately Valued? In a post on X (formerly Twitter) on Wednesday afternoon, Citron Research highlighted that Databricks has been valued at $100 billion in the private markets. "Give Palantir the same $100 billion valuation that Databricks just earned. Where does that put the stock? $40. The exact same math we saw when comparing Palantir to OpenAI," Citron's post stated. It added that "When every member of the "Mt. Rushmore of AI" -- OpenAI, Databricks, and others -- points to the same answer for Palantir's fair value, it's no longer a coincidence. It's a flashing warning sign. Palantir is a $40 stock, and every real AI leader keeps reminding us of that fact." Citron also published a table titled "Palantir Vs Databricks Metrics," showing the private AI and data analytics firm outperforming Palantir in several key areas. According to the data presented by Citron: Future Growth Projection: Databricks is projected to grow at 50%, double Palantir's 25% projection. Customer Count: Databricks has a vastly larger customer base of 15,000 compared to Palantir's 849. Net Revenue Retention: Databricks also leads in expanding business with existing clients, showing a net revenue retention of over 140%, while Palantir's is 128%. YoY Revenue Growth: Databricks' year-over-year revenue growth is 50% versus Palantir's 45%. However, Palantir's annual revenue was slightly higher at $4.15 billion compared to Databricks' $3.9 billion, according to the post. 'OpenAI At $500 Billion Puts Palantir At $40' This new comparison reinforces the central thesis of Citron's Monday report, which called OpenAI's recent $500 billion valuation the "Rosetta stone for Palantir's stock". In that report, Citron calculated that OpenAI's valuation gives it a price-to-sales multiple of roughly 17x its projected 2026 revenue. Applying that same "lofty" 17x multiple to Palantir's projected 2026 revenue of $5.6 billion would imply a stock price of approximately $40 per share. Citron argued that even this is a generous valuation, as Palantir does not deserve to trade at the same multiple as the undisputed AI leader. The firm contends that Palantir's growth, which hinges on "slow, customized contracts," does not compound in the same way as OpenAI's, calling Palantir "essentially locked-in consulting wrapped in software. See Also: Short Seller Andrew Left Says 'OpenAI At $500 Billion Puts Palantir At $40' -- And That's Generous Palantir Tumbles Following Citron Research Report The move follows Citron's bearish report on that used OpenAI's valuation as a benchmark to argue Palantir is significantly overvalued The renewed pressure from the influential short-seller has weighed on Palantir's stock. After Citron's initial report, shares of Palantir fell 9.35% on Tuesday and were down another 3.14% in pre-market trading on Wednesday. According to Benzinga Pro, PLTR's forward price-to-earnings or forward P/E ratio stood at 250x. The stock as up 109.80% year-to-date and 388.09% over the past year. Benzinga's Edge Stock Rankings indicate that PLTR maintains a stronger price trend in the short, medium, and long terms. However, the stock scores poorly on value rankings. Additional performance details are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.15% at $638.88, while the QQQ declined 0.22% to $568.03, according to Benzinga Pro data. Read Next: Viking's 42% Plunge Splits Experts -- A '$129 Strong Buy' Or 'Clearly Inferior' Drug? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Michael Vi / Shutterstock PLTRPalantir Technologies Inc$152.57-3.28%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum98.62Growth95.06QualityN/AValue2.69Price TrendShortMediumLongOverviewQQQInvesco QQQ Trust, Series 1$567.66-0.28%SPYSPDR S&P 500$638.99-0.13%Market News and Data brought to you by Benzinga APIs

Palantir Drops Below 50-Day Average-Is It Time To Buy The Deep? - NVIDIA (NASDAQ:NVDA), Palantir Technologies (NASDAQ:PLTR)

Shares of Palantir Technologies Inc. PLTR dropped 5% by midday Wednesday, extending Tuesday's sharp 9.4% slide. PLTR stock is moving fast. Check live prices here. The two-day drop marks the stock's worst back-to-back performance since April -- when President Donald Trump's tariff announcement rattled global markets. But there's something even more unique catching traders' eyes. For the first time since spring, Palantir has slipped under its 50-day moving average -- a widely watched support line on Wall Street. History shows that this is not a trivial signal: since its IPO in 2021, there have been 19 occasions when Palantir has broken below this threshold. What followed has often set the tone for months. Chart: Palantir Sinks Below Key Technical LevelAI Mania Meets Cold Reality The latest tumble comes as investors begin questioning whether the furious rally in AI-related names has run too far, too fast. A new paper out of MIT's NANDA initiative, "The GenAI Divide: State of AI in Business 2025," highlights the gap between hype and execution. Despite hundreds of billions of dollars being poured into generative AI, only about 5% of pilot programs deliver meaningful revenue growth. The study, based on 150 executive interviews, 350 employee surveys, and 300 case studies, reveals that most initiatives stall before reaching scale. This matters for Palantir. Together with Nvidia Corp. NVDA, the company has been a poster child for Wall Street's AI boom. The stock skyrocketed 167% in 2023, an astonishing 340% in 2024, and remained up nearly 100% year-to-date through August 20. Palantir Sinks Below Key Technical Level -- History Shows What Happens Next The table below highlights all 19 times since 2021 when Palantir broke below its 50-day moving average -- and the results might surprise you. Buy The Palantir Dip -- Or Not? The numbers paint a tale of two eras. In 2021 and 2022, every time Palantir broke below its 50-day moving average, the stock continued to surge. We're talking about brutal 6-month or 12-month drawdowns of up to 68%. With the lone exception of the August 2022 dip, every time Palantir broke below its 50-day moving average during 2021 and 2022 led to extended losses over the following 12 months. But since early 2023, when the AI-theme began, most technical breakdowns have been followed by outsized rallies, in some cases delivering triple-digit gains within a year. Across all 19 breakdowns, the average return over 3 months was a solid 29.2%, with nearly three-quarters of the trades ending in the green. Over 12 months, the average gain balloons to 153.6%, with the best trade started in early August 2024, posting a jaw-dropping 690% return. That tells us one thing: Palantir's risk-reward profile has shifted dramatically as the AI narrative has taken hold. So, is this latest drop just another buying opportunity? If history is any guide, dismissing the dip has been far more costly than buying it -- at least in this new chapter of AI-fueled market momentum. Now Read: America's Hottest New Real Estate Isn't For Humans -- It's For AI Image: Shutterstock NVDANVIDIA Corp$173.44-1.25%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum86.53Growth99.28QualityN/AValue6.57Price TrendShortMediumLongOverviewPLTRPalantir Technologies Inc$152.16-3.54%Market News and Data brought to you by Benzinga APIs

PLTR Stock Has Declined Over 15% In Past 5 Sessions, But This Tech Bull Says Palantir Remains 'Favorite' - Palantir Technologies (NASDAQ:PLTR)

Despite a sharp sell-off that has seen Palantir Technologies Inc. PLTR shares plummet nearly 15% in the last five sessions, Wedbush Securities analyst Dan Ives is urging investors to see the dip as a buying opportunity. Check out PLTR's stock price here. Palantir 'The Poster Child Of The AI Revolution' The prominent tech bull remains steadfast in his conviction, viewing the recent pullback as a healthy consolidation for a long-term winner in the artificial intelligence sector. Speaking on CNBC Thursday, Ives dismissed the market nervousness surrounding the stock, which has been a high-flyer in the AI space. "I think these pullbacks are healthy," Ives stated, emphasizing his long-term outlook. He described Palantir as "the poster child of the AI revolution" and boldly predicted it would grow into a "$1 trillion market" capitalization over the next three to four years, a significant jump from its current valuation of roughly $330 billion. "The nervousness I get, but it doesn't in any way change our view," he added. PLTR Revenue Could Reach $20 Billion, Says Ives To justify such a lofty target, Ives projected a future where Palantir's revenue could reach "$12, $15, $20 billion" with impressive free cash flow margins of 40% to 50%. He believes the broader AI boom is still in its early phases, using a vivid analogy to describe the opportunity. "It was 9:00 p.m., it's now 10:15 p.m. at the AI party. That party goes to 4:00 a.m.," Ives remarked, suggesting the bull cycle for top tech names has years left to run. "To me, it's not the time to run for the hills. It's actually, I view these as opportunities to own it." See Also: Palantir Short Seller Andrew Left's Citron Now Compares It To Databricks: 'PLTR Is A $40 Stock, And Every Real AI Leader Keeps Reminding Us' Andrew Left's Citron Research Shorts PLTR Ives's bullish commentary provides a strong counter-narrative to recent headwinds that have intensified selling pressure on the stock. Notably, short-seller Citron Research recently initiated a short position on Palantir, valuing the company at $40 per share. Citron's report drew unfavorable comparisons to private AI giants like OpenAI and Databricks, fueling investor concerns about Palantir's competitive standing and valuation and contributing to the recent decline. However, for Ives, the fundamental growth story remains firmly intact. Price Action Shares of Palantir fell 1.10% on Wednesday and were up 2.07% in after-hours. They have declined by 14.53% in the last five sessions, but the stock is up 107.49% year-to-date and 379.44% over the past year. According to Benzinga Pro, PLTR's forward price-to-earnings or forward P/E ratio stood at 243.902x. Benzinga's Edge Stock Rankings indicate that PLTR maintains a stronger price trend in the short, medium, and long terms. However, the stock scores poorly on value rankings. Additional performance details are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Wednesday. The SPY was down 0.27% at $638.11, while the QQQ declined 0.59% to $565.90, according to Benzinga Pro data. Read Next: Short Seller Andrew Left Says 'OpenAI At $500 Billion Puts Palantir At $40' -- And That's Generous Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Michael Vi / Shutterstock PLTRPalantir Technologies Inc$159.240.94%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum98.62Growth95.06QualityN/AValue2.69Price TrendShortMediumLongOverviewQQQInvesco QQQ Trust, Series 1$565.70-0.63%SPYSPDR S&P 500$637.80-0.31%Market News and Data brought to you by Benzinga APIs

Palantir's 70x Revenue Valuation May Be Unsustainable Despite 'Outstanding Q2 Results' -- Citi Analyst Warns Company's 'Edge' May Fade As AI Expands - (PLTR)

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter According to Tyler Radke, a senior Citigroup equity analyst, Palantir Technologies Inc.'s PLTR lofty valuations are difficult to justify despite its "outstanding Q2 results." Valuation Is Still Too High The stock has declined 15% over the past week, after Andrew Left's Citron Research revealed a short position in the company. Yet, Radke warns that the company's valuation is still too rich, "this stock, even despite its slide, is still trading at around 70 times forward revenue," he notes, adding that it was on the high end of the broader market's valuation range, while speaking on CNBC's 'Squawk Box' on Thursday. He does, however, acknowledge its strength and performance, pointing to a strong recent Q2 earnings. See Also: Palantir Just Broke Below 50-Day Average -- Is It Time To Buy The Dip? While Radtke notes that Palantir's mix of growth and profitability is rare, he says the history of buying stocks at such high multiples "hasn't been great." He says Palantir's strength lies in positioning itself as a key enabler for organizations looking to adopt artificial intelligence, but is uncertain about how long the company's lead and edge could last. "It's unclear to me if that edge is sustainable, especially as we get into more AI use cases, moving into production, adopting LLMs," he said. Insider Selling, Short Reports Dent Optimism Early this week, Citron Research initiated a short position in the stock, saying that the company's fair value based on the 2026 revenue forecast would be $40 per share, which is 74% below its current price, while adding that "at $40, PLTR would still be expensive". Citron compares Palantir with OpenAI's $500 billion valuation, highlighting the latter's "unprecedented" revenue growth relative to the former's "steady progress." The company's "lumpy, less scalable revenue" from government contracts was compared to OpenAI's "self-reinforcing growth engine." The short thesis also featured significant insider selling at Palantir in recent months, especially by CEO Alex Karp, who has sold $2 billion worth of stock over the past two years. However, Wedbush Securities analyst Dan Ives continues to remain bullish, describing Palantir as "the poster child of the AI revolution," while urging investors to see the dip as a buying opportunity. Palantir shares were up 0.11% on Thursday, closing at $156.18, and are down 0.44% after hours. The stock scores high in Benzinga's Edge Stock Rankings for Momentum and Growth, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock. Photo Courtesy: Dennis Diatel on Shutterstock.com Read More: Palantir Stock Is Facing Selling Pressure: What's Going On? Market News and Data brought to you by Benzinga APIs

Palantir Continues To Decline In Pre-Market As Valuation Concerns Mount -- Citron Research Targets Overvaluation - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR declined 0.95% to $156.08 during pre-market on Wednesday, extending its 9.35% drop from Tuesday's regular trading, despite expanding its partnership with Fujitsu Ltd. The continued slide comes amid valuation concerns intensifying following critical reports from short-seller Citron Research. Check out how PLTR stock is trading here. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedInteractive BrokersTrade global markets with low costs and pro-level tools at Interactive Brokers.Get StartedRangeRange delivers AI-powered wealth management at a fraction of the cost. Get StartedRocket HELOCGet a HELOC with mid-600s credit -- borrow and repay on repeat. Get StartedPacasoJoin 10,000+ investors betting on Pacaso's global expansion at $2.90 per share.Get StartedWorthy BondsEarn 7% fixed interest with Worthy Bonds -- start investing with just $10.Get StartedOptimus FuturesNinjaTrader gives you futures access with low day-trading margins.Get StartedIRA FinancialInvest your IRA or 401(k) in real estate, crypto, and more with IRA Financial. Get StartedAcornsGrow wealth effortlessly -- Acorns invests your spare change automatically. Get StartedSmartAssetFind a vetted financial advisor near you in minutes with SmartAsset's free tool. Get StartedCitron Research Targets $40 Price Target Renowned short-seller Andrew Left's Citron Research issued a bearish report arguing the stock of the Denver-based company is significantly overvalued and "detached from fundamentals and analysis." Using OpenAI's recent $500 billion valuation as a benchmark, Citron calculated a $40 per share price target for Palantir. See Also: Palantir, AMD, Oracle, Viking And Nvidia: Why These 5 Stocks Are On Investors' Radars Today The report's central thesis compares OpenAI's projected $29.6 billion in 2026 revenue at a 17x price-to-sales multiple to Palantir's consensus 2026 revenue forecast of $5.6 billion. Applying the same multiple implies a $40 stock price, though Citron stated "at $40, PLTR would still be expensive." Insider Selling Adds Pressure Citron's report highlighted significant insider selling by CEO Alex Karp, who has sold nearly $2 billion in shares over the past two years. The firm contrasted OpenAI's "unprecedented revenue growth" with Palantir's "steady progress" and criticized the company's reliance on "lumpy, less scalable revenue" from government contracts. Stock Performance, Partnership News Despite a 388.09% gain over the past year, PLTR has just gained 3.93% in the past month from its 52-week high of $189.46. According to Benzinga Pro data, the stock The decline occurred despite Palantir expanding its partnership with Fujitsu Ltd., granting Fujitsu rights to offer Palantir's AI Platform in Japan and integrate generative AI into Fujitsu's Uvance framework. With a strong Momentum in the 98th percentile, Benzinga's Edge Stock Rankings indicate that PLTR has a positive price trend across all time frames. Know how its momentum lines up with other well-known names. Read Next: Palantir Stock Is Trending Tuesday: What's Going On? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: PJ McDonnell on Shutterstock.com PLTRPalantir Technologies Inc$156.60-0.73%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum98.62Growth95.06QualityN/AValue2.69Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Palantir Is Plummeting Today -- Is the Stock a Buy Right Now? | The Motley Fool

Is Palantir's recent valuation slide an opportunity to invest in one of the market's strongest AI players? Palantir (PLTR -3.97%) stock is getting hit with another substantial round of sell-offs Wednesday on the heels of a big valuation pullback in yesterday's trading. The artificial intelligence (AI) leader's share price was down 7% as of 11:15 a.m. ET and had been down as much as 9.8% earlier in trading. Yesterday's big sell-off for Palantir stock was partially driven by an earnings report from Home Depot that arrived with news that the retailer would be raising prices on some items due to the higher purchasing costs it's facing as a result of tariffs. The announcement of pricing increases highlighted the possibility that inflation will soon begin hitting the consumer market. Today, Target's earnings and comments about tariff-related pressures seems to be playing a role in Palantir stock's continued slide. In addition to inflation concerns, the Massachusetts Institute of Technology (MIT) recently published a report stating that most companies that have invested in AI have gotten little or no return on their investment. New reads on inflation and the broader macroeconomic backdrop and an uptick in skepticism about artificial intelligence have caused a significant pullback for Palantir recently, but the stock is still up 93% across 2025's trading. If overall inflation starts heating up again, the Federal Reserve will have a more difficult path to delivering the interest rate cuts that growth investors have been banking on this year. Trading at roughly 221 times this year's expected earnings and 78 times expected sales, Palantir has the most growth-dependent valuation of any company in the S&P 500. If the outlook on interest rate cuts takes a turn for the worse and investors start to lose their appetite for AI stocks with heavily forward-looking valuations, the stock could continue to see big sell-offs. On the other hand, Palantir has a leading position in the AI software market and has been scoring big wins as government customers and companies have ramped up their spending on the category. For investors with a high tolerance for risk and a long time horizon, I think the stock can still deliver wins at current levels -- but threats posed by unfavorable inflation and interest rate developments suggest buyers may be able to get a better price by waiting.

Why Palantir Stock Is Sinking Today | The Motley Fool

Palantir (PLTR -8.83%) stock is under pressure and getting hit with substantial sell-offs in Tuesday's trading. The artificial intelligence (AI) leader's share price was down 5.6% as of noon ET. At the same point in the day's trading, the S&P 500 was down 0.4%, and the Nasdaq Composite was down 1%. While there do not appear to be any immediate, business-specific developments weighing on the company's stock today, there are geopolitical and macroeconomic dynamics that could be factoring into the valuation pullback. Investors taking profits on the heels of an incredible rally this year is likely also a factor in today's sell-off. Even with a significant pullback today, the stock is still up 117% year to date. Palantir has seen incredible valuation gains as investors have flocked to AI companies with exposure to the defense industry. Developments that suggest stabilization or relational improvements along geopolitical lines can sometimes cause pullbacks for the company's share price. President Donald Trump recently made comments expressing optimism about a resolution to the war between Russia and Ukraine. President Trump has recently been pushing for a meeting between Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin, and President Zelenskyy is reportedly open to such a meeting. Additionally, a report published by Bloomberg announced that Chinese exports of rare-earth minerals have returned to their highest levels since January. Tensions between the U.S. and China have played a significant role in Palantir's valuation run-up this year, and signs of improving relations could continue to dent Palantir's heavily growth-dependent valuation. Trading at roughly 253 times this year's expected earnings and 90 times expected sales, Palantir has one of the most growth-dependent valuations of any well-established company on the market. As a result, the company is at risk of seeing big sell-offs in the face of indications that macroeconomic conditions could be weakening. Palantir stock has seen sell-offs on the heels of the July Producer Price Index report from the Bureau of Labor Statistics, which showed levels of inflation that were much higher than anticipated. Some investors are concerned that inflation faced by producers and wholesalers will wind up filtering through to the consumer side of the economy and result in broader inflation that will make it more difficult for the Federal Reserve to cut interest rates. If that's the case, there's a significant risk that Palantir's bullish momentum this year could be hit with bigger setbacks.

Meet the Monster Stock That Continues to Crush the Market

Palantir has been the best-performing stock in the S&P over the past two years. Palantir Technologies (PLTR -1.76%) has been the single best-performing stock in the S&P 500 not just this year, but last year as well. The artificial intelligence (AI) leader more than doubled in 2025 through mid-August, on top of a stunning 340% gain in 2024. That kind of back-to-back performance is almost unheard of, and it's no accident. The company is growing at a blistering pace, landing massive new contracts and rapidly expanding the reach of its Artificial Intelligence Platform (AIP). With momentum this strong, it's worth looking at exactly what's driving the surge, what could slow it down, and why the long-term opportunity remains enormous. What Palantir does Palantir made a name for itself in the years after 9/11, providing advanced data analytics to U.S. intelligence agencies. It built a reputation for solving complex, high-stakes problems, with the government using it to fight terrorism and later track COVID cases. The U.S. federal government remains Palantir's largest customer, but its biggest growth engine is now the commercial sector. Palantir's secret sauce is AIP. The solution collects data from a multitude of sources, organizes it into what it calls an "ontology," and connects it to real-world assets and processes. This gives AI models the clean source of data they need to help solve real-world problems. Palantir is not building large language models (LLMs), instead it is providing the system that gives organizations the tools to make AI actually work. In essence, AIP is like an AI operating system. Strong growth Palantir's results speak for themselves. The company has seen its revenue growth accelerate for eight straight quarters. In Q2, its revenue soared 48% year over year to $1 billion. U.S. commercial revenue jumped 93% to $306 million, with customer count up 43% from a year ago. Remaining deal value in that segment more than doubled to $2.79 billion, showing just how quickly adoption is growing. Existing customers are also expanding quickly, with net dollar retention climbing to 128%. (Any number north of 100% means a company saw growth from existing customers, net of any churn.) The government side is equally strong. U.S. government revenue surged 53% to $426 million in Q2, and Palantir landed a 10-year, $10 billion Army contract consolidating 75 agreements into one. International government sales grew 37%. Risks No stock is risk-free, and the most obvious risk for Palantir is its valuation. The stock trades at a forward price-to-sales (P/S) ratio of nearly triple digits, and its price-to-earnings (P/E) multiple is nearing 275. Even if the stock were cut in half, it would still be far from cheap. That means expectations for the stock are sky high, and any slowdown in growth or hiccup in execution could send shares tumbling. International commercial adoption remains a weak spot, with revenue in that segment down slightly last quarter, so the company still has work to do in proving it can scale globally outside its government and U.S. commercial strongholds. And while the company hasn't felt an impact from U.S. government spending cuts, other defense contractors have, so it is still something to at least keep an eye on. The massive opportunity ahead Despite those risks, Palantir's opportunity is hard to ignore. AIP appears to be a game-changing platform for Palantir, capable of providing real-world analysis across seemingly any industry. The breadth of use cases for AIP is just incredible; it's being used for everything from monitoring sepsis at hospitals to helping insurance companies with their underwriting to helping companies with their supply chains. Many customers are still in the early stages of deployment, which means the opportunity for increased usage and more use cases within these customers is a huge opportunity. The company is also rolling out AI agents that can take even more direct action and handle specific automated tasks, which could further increase the platform's stickiness and impact. And with European commercial markets largely untapped, Palantir has another major growth lever. Palantir's stock is pricey, although great companies rarely trade at bargain prices. If it can maintain its AI leadership position and continue expanding its reach, the stock has the potential to be one of the defining AI investments of the next decade.

This Pure-Play Artificial Intelligence (AI) Stock Is Up 140% This Year but Trades at an Unsustainable Level, According to Famed Short-Seller Andrew Left | The Motley Fool

Many large artificial intelligence stocks trade at meteoric valuations. The stock price for the artificial intelligence (AI) data analyzing specialist Palantir Technologies (PLTR -1.76%) seems to have no ceiling. Despite some obstacles and volatility in the market in 2025, Palantir's stock jumped 129% year to date and is up over 1,720% over the last five years. Those returns have made the stock a darling of the market. They also contributed to Palantir's meteoric valuation. While the business case for Palantir shows the company has immense potential, one famed short-seller thinks the stock has run way too high. If his theory holds, Palantir investors could be facing a significant pullback at some point. Palantir is a data decision-making company that leverages artificial intelligence. Not only can the company's software gather and organize data in entirely new ways, but the AI platform also provides unique insights and even recommends actions based on the data and the implications of those decisions. Several departments in the U.S. government are Palantir clients, and the company has reached a point where the market recognizes its game-changing technology. For instance, the U.S. Department of Defense uses Palantir to help manage its counter-terrorism efforts, gathering data from various sources that are completely random to one another and extracting potentially useful intel. A big selling point for Palantir is that its technology is usable by people who don't have experience working with large language models and high-level coding. Palantir's data capabilities are also applicable to more than just government entities, and its platform is attracting interest from many different commercial companies across multiple sectors. In the second quarter of the year, Palantir generated $327 million in net income ($0.13 diluted earnings per share) on revenue of just over $1 billion that grew 48% year over year. Palantir raised its full-year revenue guidance and now expects to generate as much as $4.15 billion. Management is excited by commercial growth and is guiding for 2025 U.S. commercial-based revenue to increase at least 85% year over year to at least $1.3 billion. Most companies would love to be able to generate these financial metrics. Andrew Left, the famous short-seller who runs Citron Research, had lots of good things to say about Palantir, praising its CEO during an interview aired on Fox Business last week, calling it a "wonderful company." However, Left also expressed concerns about Palantir's sky-high valuation. Palantir stock trades at 279 times forward earnings and close to 99 times forward sales. "It's a wonderful company, but if this was the greatest company that was ever created and we gave it the same multiples, let's say Nvidia in 2023, the stock still can get cut by two-thirds," he said. "And that would be like 35 times sales." Left said in the interview that he is also worried about potential competition. He said that one of Palantir's toughest competitors, Databricks, which could go public this year, has similar revenue as Palantir and more corporate clients. Left isn't the only market analyst expressing concern about the valuation. Several other Wall Street analysts are now neutral on the stock, and a few even have a sell rating on the name. Based on 20 research reports issued on the company over the past three months, the average price target implies a roughly 16% downside to the current price, according to TipRanks. I tend to agree with Left's analysis here. Palantir's technology is undoubtedly very impressive and gaining strong traction in both the government and commercial arenas. But the company now has a $430 billion market cap and is simply overvalued. As companies get bigger, the law of large numbers suggests that appreciation gets harder because valuations get stretched. Investors are now in a position where the risk-reward proposition is tilted more toward risk. The market now expects Palantir to keep putting up great numbers and raising guidance. But a simple misstep could send shares tumbling. I would avoid the stock and wait for better entry points.

This Wall Street Analyst Thinks Palantir Stock Will Plummet 70%. Is He Right?

Palantir Technologies (PLTR 1.60%) is one of the most popular artificial intelligence (AI) stocks in the market. It has been an absolute rocket ship and has more than doubled this year. But it has had a rough couple of days and is off nearly 20% from its all-time highs. And one Wall Street analyst thinks it could tumble a lot further. Rishi Jaluria of RBC Capital Management, a subsidiary of the Royal Bank of Canada, has a $45 price target on Palantir's stock. So the stock still needs to tumble about 70% more to reach his price target. That's a long way to fall for a proven AI leader, but is that a legitimate price target? Palantir's product serves two major client bases Palantir has become one of the leaders in practical deployment of AI. Its platform allows companies to take in huge data streams, process them, and present actionable insights to their users. It also has various tools to automate these processes through AI agents, making businesses far more efficient. The company also has a unique advantage: Governments around the globe are significant customers. This stems from its original offerings, which were tailored for government use. Palantir eventually expanded to the commercial side, although its government business is still a huge part of the stock's investment thesis. In the second quarter, government revenue rose 49% to $553 million, while commercial revenue increased 47% to $451 million. Those are impressive results, and nearly any company would be happy with them. Palantir is also very profitable, converting 33% of its $1 billion in revenue into net income. Clearly, the company is doing quite well right now. It has AI buildout tailwinds blowing in its favor and is rapidly growing its revenue profitably. It's hard to imagine a scenario in which the stock plummets 70% from these levels, unless it is grossly overvalued -- which it is. Palantir has achieved a valuation few could imagine Palantir's stock has been on a monstrous multiyear run. Since 2023, when the AI race kicked off, it is up over 2,300%. However, revenue has only risen 80% since then. That's a huge mismatch and indicates that the stock's valuation has dramatically expanded. At 115 times sales and 241 times forward earnings, this overvaluation thesis is confirmed. PLTR PS Ratio data by YCharts; PS = price to sales, PE = price to earnings. Although Palantir is growing rapidly, it's not growing as fast as some might expect. Take Nvidia, for example. It has been the undisputed king of AI investing and even tripled its revenue year over year for a few quarters. Palantir isn't anywhere close to that, yet it trades at much higher levels than Nvidia has ever experienced. NVDA PS Ratio data by YCharts; YoY = year over year. Nvidia never traded for more than 50 times sales or forward earnings during its run, which gives investors a pretty clear idea of where Palantir's valuation should be. If we apply a 50 forward earnings multiple to Palantir's stock, that would indicate it should be worth 79% less than its current value. This makes Rishi Jaluria's price target seem bullish. If we maxed out its price-to-sales ratio (P/S) at 30, which is still a very expensive price tag, the stock should be worth 74% less than it is today. The reality is that years of growth are baked into the stock price, and it's quite overvalued. While I would be surprised to see a 70% decline like Jaluria projects, the math supports that statement. The market is forward-looking, though, and it sees a ton of success ahead for Palantir. I predict that it will rapidly grow as a company in the coming years; however, the market has already priced in all potential success and more, making the stock one to avoid until the price comes down to a more reasonable level.

Where Will Palantir Stock Be in 3 Years? | The Motley Fool

The market can stay irrational longer than you can stay solvent. With shares up a jaw-dropping 107% so far this year, Palantir Technologies (PLTR 1.60%) continues to prove the naysayers wrong as shares surge despite claims of overvaluation. The business is booming as public and private sector clients adopt its data analytics solutions powered by artificial intelligence (AI). But how much longer can this rally last? Let's dig deeper to find out what the coming years may have in store. While Palantir slowly built up a mysterious image, the core business is simple. Big data sets contain patterns, and Palantir's job is to help enterprises and government agencies sift through the noise to uncover actionable insights, detect fraud, and optimize their operations. While it isn't a pure-play AI company like ChatGPT creator OpenAI, it is a clear beneficiary of large language model (LLM) technology. LLMs make it easier for users to interact with data analytics tools through conversational prompts instead of complicated, training-intensive workflows. Furthermore, LLMs allow these tools to be used in fast-paced contexts such as battlefields and law enforcement operations. Palantir released its Artificial Intelligence Platform (AIP) in 2023. And the company's software earned high-profile contracts with the armed forces of Ukraine and Israel. In April, Palantir won perhaps its most important deal when the North Atlanticw Treaty Organization (NATO) decided to adopt its Maven Smart System, a platform that uses AI to assist with battlefield awareness, targeting, and decision-making. Palantir's new AI-enabled solutions led to a boom in its operational results. Second-quarter revenue jumped 68% year over year to $733 million, driven by an almost-doubling of its U.S. commercial segment, which caters to enterprise clients. Perhaps more importantly, Palantir is consistently profitable, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growing 47% to $470.9 million. However, while these are undeniably good results, a great company doesn't always make an ideal long-term investment. For starters, Palantir's valuation looks uncomfortably high. With a forward price-to-earnings (P/E) multiple of 243, shares trade at a substantial premium over those of other industry-leading AI-related stocks. For example, Nvidia has a forward price-to-earnings (P/E) multiple of just 40 despite enjoying significantly faster operational growth over the last few years. Consider what the company's stock price would be if its equity were valued similarly to Nvidia's. The results are eye-opening. With a theoretical forward P/E of just 40, Palantir's stock price would drop by around 84% -- from $174 to just $26. To be fair, that is a worst-case scenario. After all, Nvidia's stock price is remarkably cheap because of its size (it has a market cap of $4.3 trillion). As a smaller company, Palantir has more room to grow. But even a generous forward P/E ratio of 80 (stock price of $52) would still represent massive downside from the current price tag. Furthermore, Palantir's business dynamics don't seem to support such a high valuation. While the company's revenue and earnings are growing at a healthy clip, there is no reason to assume the business can maintain its acceleration. Palantir isn't the only game in town. And its economic moat is threatened by other software companies, like Microsoft and Snowflake, that also offer AI-driven analytics services. Competition could eventually challenge the company's growth rate and margins. Palantir's current valuation already prices in years (if not decades) of growth. And over the next three years, investors should probably expect shares to remain flat or decline as the hype fades. That said, investors probably shouldn't bet on a crash. Palantir seems to have developed a cult following, which may keep its valuation high for longer than expected. Shorting the stock might be even riskier than buying it at these prices.

This Artificial Intelligence (AI) Stock Has Doubled in 2025 -- Can It Keep Climbing? | The Motley Fool

Palantir's stock has had an impressive 2025 overall, but it has been a bit weak lately. Palantir (PLTR 1.60%) has had a banner year, with its shares doubling so far in 2025. However, it has had a rough few days recently, and its stock is now down by nearly 15% from its peak. Still, the first part of the year was so strong that it can fall by nearly 15% and still have more than doubled year to date. That's quite impressive. And some investors may be thinking this month's slide offers them a chance to get in on one of 2025's most successful stocks at a more reasonable price. So, should you buy Palantir's stock on the dip? Or is there something else going on here? Palantir provides artificial intelligence (AI)-driven data analytics solutions -- complex software tools that are being employed by governments and businesses worldwide. Essentially, they take in all of a client's data streams, process them using AI, and provide users with insights about their best possible courses of action. Palantir also provides AI automation with AI agents through its Artificial Intelligence Platform (AIP) product. Initially, Palantir marketed its software to government entities, where it found great success. Eventually, it expanded into the commercial sphere, where it's also seeing strong adoption. Particularly in the U.S., Palantir is seeing massive growth in commercial use cases. In Q2, its U.S. commercial customer count rose 64% year over year to 485, and U.S. commercial revenue rose 93% to $306 million. Comparatively, its international commercial revenue hasn't been all that strong. This indicates a few things. First, Palantir has a ton of room to expand. Its base of just 485 clients isn't that large compared to its potential target market. Plenty more growth is possible. Second, Palantir's services are fairly expensive. When Q2's revenue is annualized, it indicates that those 485 customers spend an average of $2.5 million apiece annually. That limits the platform's audience to larger businesses. So, while Palantir may have a ton of room to grow, the reality is that not every business is a likely target for Palantir. Still, there are a massive number of businesses that could eventually become its clients. Even though Palantir's government business is mature, it's doing phenomenally well. In Q2, government revenue rose 49% year over year to $553 million. That outpaced Palantir's global commercial business, which increased at a 47% clip to $451 million. So even though most onlookers may think the AI buildout is commercial-centric, the reality is that governments worldwide are also expanding their AI capabilities. Palantir has a lot going for it, and it has lately been one of the fastest-growing stocks on the market. If that was all the information you had to go by, you might think it would be smart to buy Palantir's stock on the dip. However, there is one more important factor investors need to consider: its valuation. Even the best companies bought at the wrong prices can turn out to be lousy investments. Palantir falls into this category for me, as it trades at a lofty 241 times forward earnings and 115 times sales. It's rare to see any company trade for more than 50 times expected forward earnings, and even rarer for a software company to trade above 30 times sales. Yet Palantir is nowhere near these reasonable benchmarks. This tells me that Palantir has years of anticipated growth baked into its current stock price. Even if Palantir grew its revenue over the next three years at a 50% compound annual rate, its P/S ratio would be 32 at today's stock price. It would be a tall order for Palantir to deliver that level of growth for that long, and even if it did, the stock would still be expensive. As a result, I don't recommend buying Palantir stock on this dip. It still has a long way down to go before it would start to look attractively priced, and in the meantime, there are far better AI investing opportunities available.