Palantir stock slumps 9%, falling for a fifth straight day from record

Palantir's banal slumped much than 9% connected Tuesday, falling for a 5th consecutive time to proceed its pullback from all-time highs.

The artificial intelligence bundle provider's banal has slid much than 15% implicit the past 5 trading sessions, aft a stellar net report earlier this period propelled shares to all-time highs. The study was Palantir's first-ever $1 cardinal gross quarter.

Tuesday's dip coincided with a broader marketplace pullback.

Palantir is the astir important gainer to day successful the S&P 500 successful 2025, up much than 100%.

Shares person much than doubled arsenic the institution benefits from ongoing AI enthusiasm, scooping up authorities contracts with President Donald Trump pushing to overhaul agencies.

Palantir's ascent has pushed the institution into a database of top 10 U.S. tech firms and 20 astir valuable U.S. companies, portion besides making shares incredibly costly to own. Its guardant price-to-earnings ratio, which tracks aboriginal net comparative to stock price, has soared past 245 times.

By comparison, exertion giants specified arsenic Microsoft and Apple transportation a P/E of astir 30 times and rake successful importantly greater quarterly revenues. Meta's and Alphabet's P/E ratios hover successful the 20s.

In a study this week, short-seller Andrew Left of Citron Research said Palantir is "detached from fundamentals and analysis" and compared it to OpenAI's caller $500 cardinal valuation.

Left said Palantir should beryllium priced astatine $40 if compared to the aforesaid price-to-revenue aggregate arsenic OpenAI.

"Karp and his squad should beryllium proud. But for investors, that's wherever subject kicks in," Left wrote. "Comparison is the force of happiness, and erstwhile measured against existent AI leaders, Palantir's terms already reflects occurrence beyond its fundamentals."