Palantir Stock Drops 31% Amid Insider Selling

Palantir Technologies Inc. has seen its stock price drop 31% from an all-time high of $124.62, closing at $85.94, primarily due to substantial insider selling and increased short selling pressure. Co-founder Stephen Cohen recently sold nearly all his shares, approximately 3.75 million valued at $310 million, which raised concerns among investors about the company's valuation and future performance. Despite strong fundamentals and innovative AI solutions that have gained customer praise, analysts express skepticism regarding the stock's high valuation of 45 times estimated earnings for 2026. The recent sell-off coincided with the announcement of a U.S. Army contract and new client acquisitions, which temporarily boosted investor confidence but failed to sustain momentum. Additionally, ongoing high short interest indicates that many investors are betting on further declines. Overall, while Palantir's stock has appreciated 259% over the past year, current market dynamics suggest a challenging outlook ahead.