Down 35% From Its All-Time High, Should You Buy the Dip on Palantir Stock?

Core Viewpoint - Palantir Technologies has experienced significant stock price decline despite strong growth and excellent Q4 2025 results, indicating that valuation concerns are driving the market's negative sentiment [1][2][4]. Group 1: Stock Performance - Palantir's stock reached an all-time high in October 2025 but ended the year approximately 10% lower and has since dropped around 35% from that peak in 2026 [1][2]. - The current stock price is $130.60, with a market capitalization of $323 billion, and it has a 52-week range of $66.12 to $207.52 [7]. Group 2: Valuation Concerns - The stock is considered expensive, trading at over 100 times forward earnings, which is a high valuation metric for a company with its growth profile [4][6]. - Analysts project Palantir's growth at 62% for 2026 and 41% for 2027, totaling 129% growth over two years, which is insufficient to justify the current stock price based on a more realistic valuation of 30 times forward earnings [6][8]. Group 3: Market Sentiment - The market appears to be reflecting skepticism about paying a premium for Palantir's stock, given that the expected growth is already factored into the price [8]. - There are other rapidly growing AI stocks available at more reasonable valuations, which may offer better long-term return potential [9].