The stock of Palantir Technologies (PLTR) is down 10% on Aug. 19 and leading the technology sector lower.
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In fact, PLTR stock is the worst performer in the benchmark S&P 500 index amid a broad selloff in technology names that also includes Nvidia (NVDA), Meta Platforms (META), and Microsoft (MSFT). The decline in Palantir’s stock comes after a big rally in the share price that began when the data analytics firm reported blowout financial results in early August.
PLTR stock is still up 110% on the year and one of the strongest equity performers in the U.S. However, some analysts worry that the current pullback could be the start of a rerating among richly valued technology companies whose stocks have been running hot since the recovery from the April low this year that was sparked by U.S. President Donald Trump’s tariffs.
Downdraft
Palantir’s stock has now declined for five consecutive trading days, pulling its share price 12% lower over that period. There’s been no obvious catalyst or reason for the current selloff. Some analysts on Wall Street are attributing it to profit taking after a big run-up in the share price.
Others say that the downturn is due to a potential pullback in stocks related to the artificial intelligence (AI) trade and worries that the U.S. Federal Reserve may hold interest rates higher for longer than hoped. Regardless of the reason, the current drop in PLTR stock comes after a 440% gain over the past year. Palantir has been riding high on strong earnings, government contract wins, and excitement about AI.
Is PLTR Stock a Buy?
The stock of Palantir has a consensus Hold rating among 20 Wall Street analysts. That rating is based on five Buy, 13 Hold, and two Sell recommendations issued in the last three months. The average PLTR price target of $156.78 implies 0.80% downside from current levels.
