Palantir stock nosedives again — week-long selloff wipes billions off the AI giant’s value

Palantir shares fell 9% on Tuesday to $157.91, and now reaching a low of $142.34 and a high of $155.76 on Wednesday, before closing at $152.95. wiping out gains from its recent strong earnings report and full-year guidance boost. The stock has dropped for five straight days, losing 15.5% since August 13. Analysts and multiple outlets linked Palantir’s fall to a Citron Research report saying the stock is overvalued, as per reports

Citron compared Palantir to OpenAI, which is valued at $500 billion, and said that if OpenAI’s price-to-sales ratio applied to Palantir, its stock would fall to $40 per share. Palantir reported $1 billion in revenue this quarter, the first time it has crossed the milestone, as reported by Forbes.

Palantir revenue growth

Palantir shares had risen over 150% from their April low, driven by strong AI tools and earnings. The company secured a $10 billion deal with the U.S. Army, consolidating 75 contracts into one agreement. Palantir expects full-year revenues of $4.14 billion to $4.15 billion, up from the previous estimate of $3.89 billion to $3.90 billion, as mentioned in the reports.


The Trump administration’s push for AI and chip infrastructure in the U.S. is boosting companies like Palantir, NVIDIA, Apple, OpenAI, and Intel. Other tech stocks also fell Tuesday, NVIDIA down 3%, Meta down nearly 2%, and the Nasdaq down 1.4%. Cryptocurrency stocks slid too: Coinbase fell nearly 5%, Robinhood more than 5%, and Bitcoin dropped 2.4% amid a two-day crypto pullback, as stated by Forbes.

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Tech stocks slide

Palantir’s five-day losing streak is its longest since March. Citron founder Andrew Left called their $40 price target for Palantir “generous”. The Technology Select Sector SPDR Fund (XLK), tracking tech stocks, fell 1.7% Tuesday. Other AI and tech names saw losses: NVIDIA down 3.5%, AMD down 5%, and Meta down 2%. The tech sector overall lost more than 2.4% over the past five sessions, as per the Yahoo Finance report.

The broader market rally is shifting toward sectors beyond Big Tech, like Health Care, Homebuilders, and small/mid-cap stocks, which rose 4% and 3% respectively in the last five days. Defensive sectors such as Real Estate, Utilities, Materials, Consumer Staples, and Health Care were the biggest gainers on Tuesday.

Because Big Tech has a large weight in indexes, S&P 500 gains are less sharp when tech underperforms; Tuesday, the S&P 500 fell over 0.5%, and the Nasdaq nearly 1.5%. Citi strategist Scott Chronert said the market is on “two parallel paths”: AI growth giants continue leading, while traditional sectors are adding stability, creating a healthier market setup. Chronert added that the “healthiest path” for the S&P 500 is a mix of continued tech growth and broader sector support, as per Yahoo Finance.

FAQs

Q1. Why did Palantir stock fall recently?
Palantir stock fell due to a Citron Research report calling it overvalued and overall tech market losses.

Q2. How much revenue did Palantir make this quarter?
Palantir reported $1 billion in revenue this quarter, the first time it crossed this milestone.