Palantir Technologies (NASDAQ:PLTR) Stock Price Down 4.8% – Here’s Why

Palantir Technologies Inc. (NASDAQ:PLTR)’s share price fell 4.8% during mid-day trading on Thursday . The stock traded as low as $126.56 and last traded at $129.13. 73,500,203 shares changed hands during mid-day trading, an increase of 43% from the average session volume of 51,256,281 shares. The stock had previously closed at $135.68.

Key Headlines Impacting Palantir Technologies

Here are the key news stories impacting Palantir Technologies this week:

• Positive Sentiment: Strong fundamentals: Q4 results and guidance showed very strong growth (revenue up ~70% year-over-year) and expanding margins, reinforcing Palantir’s enterprise‑AI commercial momentum — a primary reason bulls say the long‑term case remains intact. Palantir Is Down 27%, But the Long-Term Math Still Favors Bulls
• Positive Sentiment: Defense/government catalyzer: DISA extended IL5/IL6 authorization to Palantir’s on‑premises and edge PFCS deployments, widening addressable opportunities for classified and edge AI workloads. Palantir Receives DISA Authorization for PFCS Forward
• Positive Sentiment: Commercial contract renewal: Palantir signed a multi‑year renewal with Airbus for Skywise, underscoring sticky enterprise relationships outside government. Palantir Signs a Multi-Year Contract Renewal With Airbus
• Neutral Sentiment: Analyst stance mixed: Some firms upgraded/affirmed PLTR on AI/contract momentum while others warn about valuation — consensus targets remain well above current levels, creating both upside and re‑rating risk. Mizuho Cautious on Valuation but Backs Palantir Growth Outlook
• Negative Sentiment: Sharp valuation‑led selloff: Heavy recent declines (reports of 25–27% pullbacks YTD) reflect retail weakness and rotation away from richly priced AI names; headlines frame PLTR as overvalued despite revenue gains. Palantir Drops 25% Despite 70% Revenue Growth
• Negative Sentiment: Bear pressure and options activity: Prominent bearish commentary (notably Michael Burry) and a large uptick in put‑option volume have amplified downside volatility and investor caution. Michael Burry’s Bearish Call on Palantir
• Negative Sentiment: Retail/social sentiment turned bearish and insider selling noted in public filings — these behavioral signals can deepen short‑term pressure even when fundamentals look strong. Quiver Quantitative Summary

Wall Street Analyst Weigh In

A number of brokerages have weighed in on PLTR. Northland Securities raised shares of Palantir Technologies from a “market perform” rating to an “outperform” rating and set a $190.00 price target for the company in a report on Tuesday, February 3rd. Truist Financial assumed coverage on shares of Palantir Technologies in a research note on Tuesday, January 6th. They issued a “buy” rating and a $223.00 target price for the company. Robert W. Baird raised Palantir Technologies from a “neutral” rating to an “outperform” rating and set a $200.00 target price on the stock in a research report on Tuesday, February 3rd. Weiss Ratings cut Palantir Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, January 15th. Finally, Royal Bank Of Canada raised their price objective on Palantir Technologies from $45.00 to $50.00 and gave the stock an “underperform” rating in a research report on Tuesday, November 4th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $191.05.

Palantir Technologies Price Performance

The firm has a market capitalization of $313.09 billion, a P/E ratio of 208.51, a PEG ratio of 2.48 and a beta of 1.64. The company’s 50 day moving average price is $169.93 and its 200 day moving average price is $172.41.

Palantir Technologies (NASDAQ:PLTR) last posted its quarterly earnings data on Monday, February 2nd. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.34 billion. Palantir Technologies had a return on equity of 23.81% and a net margin of 36.31%.The business’s revenue for the quarter was up 70.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.14 EPS. On average, research analysts anticipate that Palantir Technologies Inc. will post 0.31 EPS for the current fiscal year.

Insider Activity at Palantir Technologies

In related news, insider Alexander C. Karp sold 359,325 shares of the stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $163.99, for a total value of $58,925,706.75. Following the transaction, the insider directly owned 6,432,258 shares in the company, valued at $1,054,825,989.42. This represents a 5.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Stephen Andrew Cohen sold 308,635 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $163.99, for a total transaction of $50,613,053.65. Following the completion of the transaction, the insider directly owned 592 shares in the company, valued at approximately $97,082.08. The trade was a 99.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,023,844 shares of company stock worth $167,455,085. Insiders own 9.23% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Palantir Technologies by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 215,444,098 shares of the company’s stock worth $38,295,188,000 after purchasing an additional 1,557,828 shares during the last quarter. State Street Corp grew its stake in shares of Palantir Technologies by 1.1% in the fourth quarter. State Street Corp now owns 102,385,317 shares of the company’s stock valued at $18,198,990,000 after buying an additional 1,126,418 shares in the last quarter. Geode Capital Management LLC increased its holdings in Palantir Technologies by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 54,200,265 shares of the company’s stock worth $9,599,882,000 after buying an additional 805,047 shares during the last quarter. Norges Bank acquired a new position in Palantir Technologies during the fourth quarter worth $5,149,641,000. Finally, Invesco Ltd. raised its position in Palantir Technologies by 5.9% during the third quarter. Invesco Ltd. now owns 21,798,785 shares of the company’s stock worth $3,976,534,000 after acquiring an additional 1,213,529 shares in the last quarter. 45.65% of the stock is currently owned by institutional investors.

About Palantir Technologies

Palantir Technologies is a software company that develops data integration, analytics and operational decision-making platforms for government and commercial customers. Founded in 2003 by a team that included Alex Karp and Peter Thiel, Palantir has grown into a provider of enterprise-scale software designed to help organizations integrate disparate data sources, build analytic models and drive operational workflows. The company went public in 2020 and continues to position its products around large, complex data projects where security, provenance and real-time collaboration are important.

Palantir’s product portfolio centers on a small number of core platforms.