TLDR
- Palantir (PLTR) stock closed down 1% on Monday but had been down as much as 5.9% earlier in the session
- The stock is now down 10% over the last week and 16% from its all-time high
- Despite recent pullbacks, PLTR is still up 108% year-to-date and 1,840% over the last three years
- Nine analysts have revised earnings estimates higher in the last 60 days, with consensus growing 58.5% for fiscal 2025
- The stock was added to Zacks Focus List in March 2024 at $24.51 and has since gained 539.37% to $156.71
Palantir Technologies stock experienced another decline on Monday, closing down 1% after falling as much as 5.9% during morning trading. The artificial intelligence software company has faced headwinds over the past week.
The broader market also saw selling pressure. The S&P 500 ended down 0.4% while the Nasdaq Composite fell 0.2%.
No major business news appears to have driven Palantir’s latest decline. Instead, the stock seems caught up in general market weakness affecting tech names.
The recent selling has pushed PLTR down 10% over the last week of trading. From its all-time high, the stock now sits 16% lower.
Despite the pullback, Palantir remains one of this year’s biggest winners. The stock is still up 108% year-to-date for 2025.
Over a longer timeframe, the gains look even more impressive. PLTR has soared 1,840% over the last three years.
Analyst Sentiment Remains Positive
Wall Street analysts continue showing confidence in Palantir’s prospects. Nine analysts have revised their earnings estimates higher over the last 60 days.
The Zacks Consensus Estimate has increased by $0.07 to $0.65 for fiscal 2025. Analysts expect earnings to grow 58.5% for the current fiscal year.
Palantir has a track record of beating expectations. The company boasts an average earnings surprise of 13.2%.
The Denver-based company was added to the Zacks Focus List on March 26, 2024. At that time, shares traded at $24.51.
Since joining the Focus List, PLTR has gained 539.37% to reach $156.71. This performance highlights the stock’s explosive growth trajectory.
Valuation Concerns Persist
Despite strong business momentum, Palantir trades at premium valuations. The stock currently trades at approximately 90 times this year’s expected sales.
On an earnings basis, PLTR trades at 242 times expected non-GAAP adjusted earnings. These multiples stand out even among high-growth AI stocks.
The company serves both private sector customers and government clients. Palantir’s exposure to the defense industry provides some stability in uncertain times.
Recent market volatility has highlighted the risks of investing in richly valued growth stocks. Concerns about practical AI business applications have weighed on the sector.
Palantir continues building momentum with private-sector customers while maintaining its government relationships. The company’s software platforms help with counterterrorism investigations and operations across the United States and internationally.
Founded in 2003, Palantir has established itself as a leading player in AI software solutions. The company’s platforms serve the intelligence community and various commercial enterprises.
