Palantir Technologies ( (PLTR) ) has fallen by -9.58%. Read on to learn why.
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Palantir Technologies has experienced a notable stock price decline of 9.58% over the past week, despite reporting impressive Q3 2025 earnings with a 63% year-over-year revenue growth. The drop in share price is largely attributed to concerns over the company’s high valuation and fears of an AI bubble, which have overshadowed its robust financial performance. Notably, investor Michael Burry’s bearish position against Palantir has added to the selling pressure, highlighting the market’s cautious stance.
The company’s recent partnership expansion with PwC UK, a major consulting firm, underscores growing confidence in Palantir’s AI tools and its strategic push to diversify beyond government contracts into the enterprise sector. This deal is seen as a significant step in Palantir’s efforts to capture a larger share of the enterprise AI market, particularly in the UK, where the company has been increasing its investments. Despite these positive developments, Wall Street remains cautious, with a consensus Hold rating on the stock, reflecting concerns over its valuation.
While Palantir’s growth metrics are impressive, with a Rule of 40 score of 114% and strong commercial revenue growth, analysts like Julian Lin express skepticism about the sustainability of such growth given the company’s steep valuation. The stock’s recent decline suggests that investors are wary of the potential for growth deceleration and valuation contraction, even as some investors, like James Foord, remain optimistic about the company’s long-term prospects in the AI sector.