Palantir Stock Volatility Sparks Market Debate Amid AI Sector Rotation
Palantir Technologies Inc. shares have become a bellwether for the AI sector's volatility, plunging 18% from August highs amid broader market rotations. The stock's rapid ascent to $190—making it one of the S&P 500's top performers this year—collapsed as traders pivoted to small-cap plays ahead of anticipated Fed rate cuts.
Insider selling compounded pressures. CEO Alex Karp's stock sales for tax obligations, though routine, amplified bearish sentiment in a market hypersensitive to AI valuations. The selloff underscores how quickly momentum can reverse in crowded tech trades.