why is palantir stock down

Palantir stock is down mainly because valuation worries and broader tech‑sell‑off pressure are outweighing its strong earnings and AI‑driven growth story right now.

What’s happening in the short term

• Palantir (PLTR) has dropped roughly 11–14% in a single day recently, even after a strong Q4 earnings beat and analyst upgrades.

• The stock is trading well below its 20‑day and 100‑day moving averages , signaling a bearish short‑term trend.

• Trading volume spiked above the three‑month average, showing heavy selling interest.

Why investors are selling

• Valuation concerns : Palantir trades at an extremely high multiple (around 340–350× trailing earnings), so any hint of growth slowdown makes investors nervous.

• Growth already priced in : The market had already baked in rapid AI‑driven revenue growth; even solid results can trigger profit‑taking when expectations were sky‑high.

• Tech‑sector rotation : Broader weakness in the Nasdaq and AI‑software names has dragged PLTR down along with peers.

Company fundamentals vs. sentiment

• Business is strong : Q4 revenue grew about 70% year‑over‑year , with robust government and commercial demand and a major $1 billion UK Ministry of Defence contract.

• Guidance is upbeat : Management projects around 60%+ revenue growth for 2026 , which is accelerating versus prior years.

• Yet sentiment is fragile because any stumble in growth or margins could hurt a stock trading at such a premium.

How this fits the “latest news” angle

• In early 2026, PLTR is down roughly 20% year‑to‑date after a massive 2025 run, as investors reassess whether the AI‑hype valuation is sustainable.

• Recent forum‑style chatter often frames the pullback as a mix of profit‑taking, valuation worries, and fear of a broader AI‑software correction , rather than a fundamental breakdown.

If you tell me whether you’re asking about today’s move , January’s drop , or the longer‑term trend , I can break it down with a simple table of key drivers.