Shares in the tech giant Palantir Technologies (PLTR) lost value for the fifth successive day, falling more than 9% to close below $158.
Palantir shares fell by more than 9% on Tuesday, following five straight days of decline and continued heavy losses. The significant drop to below $158 comes despite the artificial intelligence (AI) software company posting strong recent Q2 results.
The leading technology firm recently reported its first-ever $1 billion revenue quarter, which sent its stock soaring to all-time highs. However, the PLTR stock price has since lost over 15% during the last five trading sessions, unsettling many investors.
Broadly speaking, Palantir has been one of the strongest performers in the S&P 500 since the start of the year. Shares have more than doubled in 2025, driven by government contracts and strong demand for AI tools across various industries.
News of Tuesday’s dip coincided with numerous other declines from leading tech stocks. The likes of Nvidia, AMD, and Meta also recorded notable losses, weighing on down on investor sentiment. Added to this, the Nasdaq dropped nearly 1.5% and the S&P 500 fell 0.5%.
Analysts divided on Palantir shares
Multiple Wall Street analysts are split on Palantir, with many voicing caution despite praising its strong revenue performance. Research from Visible Alpha found that, out of eight surveyed analysts, only two recommended buying shares, while six advised holding due to valuation concerns.
Meanwhile, Jefferies analysts said Palantir’s revenue growth remains impressive but warned its stock price is disconnected from realistic growth expectations. HSBC also warned that shares may be “priced for perfection,” leaving little room for disappointment in future performance.
Pressure was also applied on Palantir after a bearish report by short seller Citron Research, which predicted a price target of $40. The company’s founder, Andrew Left, described the target as “generous,” despite being far below current trading levels.
All eyes on Palantir’s future performance
Amid the mixed picture and various analyst warnings, investors remain drawn to Palantir’s potential, thanks to excitement around AI and increased government adoption. Donald Trump’s push to modernise federal agencies has helped the company secure high-profile government contracts, strengthening its revenue base.
Also, the firm’s rapid climb has placed it among the top 10 US technology firms and 20 most valuable companies overall. However, there are concerns that Palantir’s stock may struggle to maintain momentum, especially after recording its longest losing streak since March.
Investors are now watching closely to see if Palantir stabilises or continues sliding alongside other major technology companies. The coming weeks could prove decisive for both its valuation and broader market success.
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