From Hero To Zero? How Far Could Palantir Fall

Core Insights - Palantir Technologies (PLTR) stock has experienced a 5.8% decline in a single day, raising concerns about its high valuation and potential slowdown in the AI market [2] - The company is facing challenges in international commercial growth and remains heavily reliant on government contracts, exposing it to political and budget risks [3] - Increased competition from major players like Microsoft and AWS, as well as emerging AI startups, threatens Palantir's pricing power and long-term margins [3] Financial Metrics - Palantir Technologies is valued at $370 billion with $3.9 billion in revenue, currently trading at $155.75 [10] - The company has reported a revenue growth of 47.2% over the past 12 months and an operating margin of 21.8% [10] - The stock is currently valued at a P/E multiple of 338.0 and a P/EBIT multiple of 435.8, indicating a very high valuation [10] Historical Performance - PLTR stock has seen significant volatility, with an 84.6% drop from a peak of $39.00 on January 27, 2021, to $6.00 on December 27, 2022, compared to a 25.4% decline for the S&P 500 during the same period [11] - The stock fully rebounded to its pre-crisis peak by October 3, 2024, and reached a high of $207.18 on November 3, 2025, currently trading at $155.75 [11] - In a previous downturn, PLTR stock dropped by 22.5% from a high of $29.05 on November 25, 2020, to $22.51 on December 2, 2020, but regained its pre-crisis peak by January 22, 2021 [12]