Palantir Stock Tanks: Here’s Why Investors Are Panicking in August 2025
Palantir's shares just took a nosedive—and Wall Street's algo-traders are scrambling to hit the sell button first.
The Data Dive: No surprises here—another overhyped tech stock getting reality-checked by actual earnings. The big-data darling bled red as institutional investors finally asked: 'Where's the AI moat?'
Short-Seller Fuel: Rumors swirl about defense contract delays (because apparently even Skynet needs paperwork). Meanwhile, retail bagholders are left holding the… well, bags.
Silver Lining Playbook: Bulls whisper 'buy the dip' while quietly updating their LinkedIn profiles. Because nothing says 'conviction' like panic-googling 'how to short stocks.'
Funny how these 'disruptive' companies always get disrupted by that pesky thing called 'profitability.'
Image source: Getty Images.
Palantir stock slips as macroeconomic outlook softens
The U.S. Bureau of Labor Statistics published its jobs data for July, and the market is having a strong bearish reaction. While the U.S. economy added 73,000 non-farm jobs last month, the growth came in well below the 100,000 net additions called for by the average economist estimate.
Making matters worse, jobs growth for previous months was also revised downward. June's net non-farm payroll additions were revised from 147,000 to 14,000, and May's jobs growth was revised from 125,000 additions to 19,000. While the latest jobs data helps support the case for the Federal Reserve to cut interest rates at its September meeting, some investors are concerned that the central bank may have waited too long to cut rates -- and that could mean valuation pressures for Palantir and other growth stocks.
What's next for Palantir?
Palantir is gearing up to publish its second-quarter results, which will be released after the market closes on Aug. 4. With its last performance update, Palantir guided for sales to come in between $934 million and $938 million in the second quarter. Management also guided for non-GAAP (adjusted) income from operations of between $401 million and $405 million.
Palantir has built up an impressive track record of earnings beats, and investors will likely be looking for the artificial intelligence leader to significantly exceed its performance targets. With the company valued at approximately 94 times this year's expected sales and 267 times expected adjusted earnings, Palantir has an extremely growth-dependent valuation -- and its upcoming Q2 release is poised to be another big test for the stock.
