Palantir Shares Fall Nearly 20% Amid Longest Six-Day Losing Streak

Palantir Technologies has experienced a significant decline, falling for six consecutive trading days and losing about 20% from its recent all-time high of $190 in mid-August 2025. This selloff has brought the stock into bear market territory, fueled by broader market risk-off sentiment, profit-taking among high-valuation AI and tech stocks, and concerns about overvaluation highlighted by short-seller Citron Research, which argued Palantir's price should be closer to $40 per share based on revenue multiples compared to AI peers like OpenAI. Despite strong contract wins and expansion into government and commercial sectors, Palantir’s premium valuation has made it vulnerable to market pullbacks amid macroeconomic uncertainties and sector rotation. Analysts view the current correction as a healthy market adjustment, with some considering it a buying opportunity, while short sellers may re-enter if the stock rebounds. Palantir’s volatility reflects broader investor reassessment of AI sector valuations and expectations for government spending under the Trump administration, alongside uncertainty around Federal Reserve policy. Overall, Palantir remains a key player in AI and data analytics, but its stock is highly sensitive to market sentiment and technical factors.