Palantir Stock Is Down 32% From Its Record High. History Says This Will Happen Next.
Palantir Technologies (NASDAQ: PLTR) made history when it peaked near $125 per share on Feb. 18, achieving an unprecedented valuation of 61 times forward sales. The stock at that point had skyrocketed 625% since January 2024, making it the best-performing member of the S&P 500 (SNPINDEX: ^GSPC) during that period by a wide margin.However, disappointing economic data and concerns about tariffs set to take effect in early March have since rattled Wall Street. Palantir has tumbled 32% from its record high in the past week amid a drawdown in the broader market, and history says the stock has further to fall.Palantir made history on Feb. 18 when its forward price-to-sales (P/S) multiple reached 61. That valuation ratio is calculated by dividing the current market capitalization by forecast sales over the next four quarters. Put differently, the forward P/S ratio quantifies the current share price as a function of anticipated future revenue. And 61 times forward sales is absurdly expensive.Continue reading
Palantir Technologies (NASDAQ: PLTR) made history when it peaked near $125 per share on Feb. 18, achieving an unprecedented valuation of 61 times forward sales. The stock at that point had skyrocketed 625% since January 2024, making it the best-performing member of the S&P 500 (SNPINDEX: ^GSPC) during that period by a wide margin.
However, disappointing economic data and concerns about tariffs set to take effect in early March have since rattled Wall Street. Palantir has tumbled 32% from its record high in the past week amid a drawdown in the broader market, and history says the stock has further to fall.
Palantir made history on Feb. 18 when its forward price-to-sales (P/S) multiple reached 61. That valuation ratio is calculated by dividing the current market capitalization by forecast sales over the next four quarters. Put differently, the forward P/S ratio quantifies the current share price as a function of anticipated future revenue. And 61 times forward sales is absurdly expensive.
