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.