Palantir Is Sinking Today -- Is It Time to Buy the Stock?
Following huge gains in yesterday's trading, Palantir Technologies (NASDAQ: PLTR) stock is losing ground Thursday. The company's share price was down 3.9% as of 10:15 a.m. ET. At the same point in the day, the S&P 500 (SNPINDEX: ^GSPC) had fallen 3.3%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had slipped 3.7%.Palantir stock surged yesterday after President Trump announced a 90-day pause on "reciprocal tariffs" and a near-universal 10% tariff on all imported goods. The lone exception to the reciprocal tariff pause was China, which Trump said would see its tariffs rise to 125%. But the administration clarified today that the new effective tariff rate on Chinese products was actually 145%, because the 125% tax cited yesterday was in addition to a previously existing 20% tariff. Investors responded by selling out of stocks again today, but Palantir is still up roughly 18% in 2025. With Palantir stock priced at roughly 159 times this year's expected earnings and 55 times expected revenue, the company has an extremely growth-dependent share price that stands out even among tech sector peers with heavily forward-looking valuation profiles. Unless you have very high levels of risk tolerance, the stock is probably not a good portfolio fit, even after recent volatility.Continue reading
Following huge gains in yesterday's trading, Palantir Technologies (NASDAQ: PLTR) stock is losing ground Thursday. The company's share price was down 3.9% as of 10:15 a.m. ET. At the same point in the day, the S&P 500 (SNPINDEX: ^GSPC) had fallen 3.3%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had slipped 3.7%.
Palantir stock surged yesterday after President Trump announced a 90-day pause on "reciprocal tariffs" and a near-universal 10% tariff on all imported goods. The lone exception to the reciprocal tariff pause was China, which Trump said would see its tariffs rise to 125%. But the administration clarified today that the new effective tariff rate on Chinese products was actually 145%, because the 125% tax cited yesterday was in addition to a previously existing 20% tariff. Investors responded by selling out of stocks again today, but Palantir is still up roughly 18% in 2025.
With Palantir stock priced at roughly 159 times this year's expected earnings and 55 times expected revenue, the company has an extremely growth-dependent share price that stands out even among tech sector peers with heavily forward-looking valuation profiles. Unless you have very high levels of risk tolerance, the stock is probably not a good portfolio fit, even after recent volatility.
