Palantir Stock Plummets Today — Is This Your Buying Opportunity?

Palantir's stock just took a nosedive — and the Street can't decide whether to panic or pile in.

What's driving the selloff?

Tech investors are dumping shares after earnings missed expectations, sending the data analytics giant into a tailspin. The company's controversial government contracts and volatile commercial growth have always made this stock a rollercoaster — today's just another loop-de-loop.

Buy the dip or watch it crash?

Bulls see this as classic overreaction — a chance to grab a innovative tech play at a discount. Bears point to stretched valuations and question whether Palantir can ever shake its 'spy tech' reputation to achieve mainstream enterprise adoption.

Meanwhile, Wall Street analysts are upgrading and downgrading simultaneously — because why pick a side when you can collect fees from both?

One thing's certain: in a market where most 'innovative' companies just repackage old ideas with blockchain buzzwords, Palantir actually builds real technology. Whether that technology is worth today's price — well, that's the billion-dollar question.

Image source: Getty Images.

In addition to inflation concerns, the Massachusetts Institute of Technology (MIT) recently published a report stating that most companies that have invested in AI have gotten little or no return on their investment. New reads on inflation and the broader macroeconomic backdrop and an uptick in skepticism about artificial intelligence have caused a significant pullback for Palantir recently, but the stock is still up 93% across 2025's trading.

Is Palantir stock a buy right now?

If overall inflation starts heating up again, the Federal Reserve will have a more difficult path to delivering the interest rate cuts that growth investors have been banking on this year. Trading at roughly 221 times this year's expected earnings and 78 times expected sales, Palantir has the most growth-dependent valuation of any company in the. If the outlook on interest rate cuts takes a turn for the worse and investors start to lose their appetite for AI stocks with heavily forward-looking valuations, the stock could continue to see big sell-offs.

On the other hand, Palantir has a leading position in the AI software market and has been scoring big wins as government customers and companies have ramped up their spending on the category. For investors with a high tolerance for risk and a long time horizon, I think the stock can still deliver wins at current levels -- but threats posed by unfavorable inflation and interest rate developments suggest buyers may be able to get a better price by waiting.