Palantir Technologies Stock Is Dropping Like a Rock. Should You Start Buying?
Palantir Technologies (NASDAQ: PLTR) got off to a red-hot start in 2025 and quickly registered gains of more than 60% in less than two months, hitting a 52-week high on Feb. 18, but it has been retreating rapidly since then.More specifically, Palantir stock has shed 28% of its value since Feb. 18. The steep decline in Palantir's shares can be attributed to a combination of a potential reduction in the Pentagon's budget over the next five years and the possibility of CEO Alex Karp selling more than $1.2 billion worth of stock. It is worth noting that Karp sold close to $1.9 billion worth of Palantir stock last year, capitalizing on the stock's stunning rise in 2024.These developments have triggered a major correction in Palantir stock of late, and that's not surprising considering the expensive valuation at which this software and analytics provider has been trading. Moreover, Palantir's next quarterly report is more than two months away. Palantir's outstanding rally has been powered by its stronger-than-expected results and guidance in recent quarters, so there is a possibility that its slide may continue for the next few weeks on account of the negative sentiment.Continue reading
Palantir Technologies (NASDAQ: PLTR) got off to a red-hot start in 2025 and quickly registered gains of more than 60% in less than two months, hitting a 52-week high on Feb. 18, but it has been retreating rapidly since then.
More specifically, Palantir stock has shed 28% of its value since Feb. 18. The steep decline in Palantir's shares can be attributed to a combination of a potential reduction in the Pentagon's budget over the next five years and the possibility of CEO Alex Karp selling more than $1.2 billion worth of stock. It is worth noting that Karp sold close to $1.9 billion worth of Palantir stock last year, capitalizing on the stock's stunning rise in 2024.
These developments have triggered a major correction in Palantir stock of late, and that's not surprising considering the expensive valuation at which this software and analytics provider has been trading. Moreover, Palantir's next quarterly report is more than two months away. Palantir's outstanding rally has been powered by its stronger-than-expected results and guidance in recent quarters, so there is a possibility that its slide may continue for the next few weeks on account of the negative sentiment.
