Why Palantir stock is selling off

Palantir's Performance & Valuation - Palantir is experiencing a decline, down more than 15% over the past 5 days [1] - The primary bear argument against Palantir is its high valuation [6] - Palantir's stock could decrease to $100 and still be considered richly valued [10] - A 30% to 40% drop in Palantir's stock price would make its valuation more appealing [6] Competitive Landscape - Open AI is aggressively pursuing enterprise AI projects, posing a competitive threat to Palantir [4] - Open AI is actively recruiting talent from Palantir, intensifying the competition for AI expertise [5][11] - Data bricks raised funding at a valuation exceeding $100 billion, positioning it as a competitor [5] - Palantir's market dominance may not be sustainable due to competition from innovative companies like Open AI, Anthropic, and Data Bricks [11][12] Financial Metrics & Future Outlook - Palantir reported a "rule of 92" quarter, with 46% revenue growth and a 46% adjusted operating margin [3] - Investors are scrutinizing any signs of weakness due to the company's high valuation associated with its rule of 92 score [4] - The key question for investors is whether Palantir can achieve a "rule of 100" in the coming quarters [7]