Palantir stock tanks 9%, falling for a fifth straight day from record. A look at what company does

The stocks of Palantir fell for a fifth straight day after touching new highs earlier this month. The shares slumped more than 9% on Tuesday. The artificial intelligence software provider’s stock has slid more than 15% over the last five trading sessions, after a stellar earnings report earlier this month propelled shares to all-time highs, reports CNBC. Palantir is a tech company that develops data analytics software that can integrate data and insights for data-backed decision-making.

What does Palantir do?

According to MarketBeat, Palantir provides the critical infrastructure through its platforms, Foundry and Gotham, that allows businesses to derive meaningful insights from AI applications. In simple terms, the company is transforming the way companies utilize AI.

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Palantir has long been one of Silicon Valley’s most mysterious players. First built to serve U.S. military intelligence and its allies, the platform has since expanded to power decision-making for public and private organizations worldwide. By pulling together data from hundreds of sources and layering artificial intelligence on top, Palantir enables governments and businesses to sharpen operations and make smarter, faster decisions.


According to BuiltIn, Palantir is a tech company that develops data analytics software that can integrate data and insights for data-backed decision-making. Though it is best known for its work in national security, the company has also assisted governments in vaccine distribution and identifying tax fraud. Its software is now used by a mix of government and commercial clients in more than 40 industries, including healthcare, finance and manufacturing.

Palantir was founded in 2003 by PayPal co-founder Peter Thiel alongside Alex Karp, Joe Lonsdale and Stephen Cohen. As of June 2025, Karp is the CEO of the company, and Cohen is the president of the company.

Palantir originally focused on helping intelligence agencies, particularly the U.S. government, detect patterns and uncover hidden connections in large data sets. Over time, the company expanded into commercial sectors while maintaining its core strength in government work.

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Palantir’s business is built around two flagship platforms:

Palantir Gotham – First created for counterterrorism, Gotham is now a go-to tool for government agencies, especially in defense and intelligence. It helps users pull together massive amounts of data from different sources, analyze it, and visualize patterns. The goal: turning raw information into actionable insights. For militaries and intelligence services, Gotham has become an indispensable decision-making tool.

Palantir Foundry – Designed for commercial use, Foundry gives enterprises the ability to integrate their data, run advanced analytics, and build digital models of their operations. From healthcare and automotive to finance, companies use Foundry to streamline workflows, run simulations, and uncover insights that drive smarter business decisions.

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Why are Palantir stocks falling?

In a report this week, Citron Research’s short-seller Andrew Left argued that Palantir is “disconnected from fundamentals and real analysis,” drawing a comparison to OpenAI’s recent $500 billion valuation. According to Left, if Palantir traded at the same price-to-revenue multiple as OpenAI, its stock should be worth around $40.

“Karp and his team should be proud. But for investors, that’s where discipline kicks in,” Left wrote. “Comparison is the enemy of happiness, and when measured against true AI leaders, Palantir’s price already reflects success beyond its fundamentals.”