Software analytics firm Palantir is experiencing a significant decline in its stock price, falling by 9% on Tuesday to $157.91 per share. The company’s shares have dropped 15.5% since August 13 as investors reassess their expectations.
The slump comes after Citron Research published a short report that questioned Palantir’s valuation, citing OpenAI’s massive $500 billion valuation. If OpenAI’s price-to-sales ratio were applied to Palantir, the company’s stock would plummet to $40 per share – a drastic drop from its current value of $159.15.
Palantir reported $1 billion in quarterly revenue for the first time this month, marking a significant milestone. However, the company’s recent struggles are part of a broader trend in the tech industry, with other AI-related stocks like NVIDIA and Meta experiencing losses.
NVIDIA shares fell 3% hours before close on Tuesday, while Meta’s stock dropped nearly 2%. The Nasdaq also declined by 1.4% in midday trading. Cryptocurrency stocks also tumbled, with Coinbase and Robinhood shares falling more than 5%, amid a two-day crypto pullback.
Palantir’s recent success can be attributed to its AI tools, which have contributed to the company securing a $10 billion deal with the Army. However, investors are now reassessing their expectations due to concerns about the AI bubble and market volatility. The company expects more growth this year, but the current market conditions may impact its prospects.
The decline in Palantir’s stock price is a reflection of broader fears about the tech industry’s performance and the potential risks associated with the AI bubble.
Source: https://www.forbes.com/sites/antoniopequenoiv/2025/08/19/palantir-stock-slumps-over-9-as-ai-stocks-like-nvidia-and-meta-cool-off