Palantir’s stock fell for a fifth straight day, shedding more than 9% on Tuesday. This marks the company’s latest pullback from its all-time highs reached earlier this month. The decline comes despite Palantir reporting its first-ever $1 billion revenue quarter, a stellar performance that propelled shares to new heights.
As the most significant gainer in the S&P 500 this year, Palantir’s stock has more than doubled, driven by government contracts and AI enthusiasm. The company has scooped up lucrative deals with President Donald Trump pushing to overhaul agencies. This ascent has pushed Palantir into the top 10 US tech firms and 20 most valuable US companies.
However, the high valuations have raised concerns. Palantir’s forward price-to-earnings ratio now soars past 245 times, making shares expensive to own. In comparison, technology giants like Microsoft and Apple carry a P/E of nearly 30 times, with significantly greater quarterly revenues. Meta’s and Alphabet’s ratios hover in the 20s.
Source: https://www.cnbc.com/2025/08/19/palantir-stock-down.html