Palantir Stock (PLTR) Drops Amid Valuation Concerns and Broader Tech Sell-Off
Palantir Technologies (PLTR) shares continue to decline, dropping 6.53% on Thursday and another 0.15% in pre-market trading Friday. The stock has fallen over 15% since its Q3 earnings report, despite strong performance, as investors take profits and question the company's high valuation.
The sell-off reflects broader concerns in the tech sector, where AI-driven rallies have led to fears of overvaluation. Uncertainty around potential Fed rate cuts in December and skepticism about the profitability of massive data center investments are adding pressure. Palantir CEO Alex Karp recently cautioned that much of today's AI market may not justify current spending levels.
Economic uncertainty persists as government agencies recover from the shutdown, delaying clarity on the job market even as early signs of layoffs emerge. The combination of these factors has created a perfect storm for Palantir investors.
