Palantir Technologies Slides as AI Hype Meets Harsh Reality

Palantir Technologies ( (PLTR) ) has fallen by -9.64%. Read on to learn why.

Palantir Technologies shares slipped 9.64% over the past week as profit-taking, valuation worries, and shifting sentiment toward AI stocks weighed on the name. After a powerful run in 2025, investors are questioning how quickly massive AI infrastructure spending by big cloud and platform players will translate into durable profits for software vendors like Palantir. That broader concern, combined with Palantir’s still-rich valuation and a year-to-date decline of about 25% despite solid quarterly results, has left the stock vulnerable to pullbacks as traders lock in gains.

Negative commentary from high‑profile bears has added to the pressure. Michael Burry, famous for his prescient call on the 2008 housing crisis, has publicly highlighted a bearish head‑and‑shoulders pattern in Palantir’s chart and hinted at a deeper fundamental critique. His large AI‑related put positions and warnings about potential downside targets have unsettled shorter‑term investors and amplified selling, contributing to day‑to‑day weakness in the shares during the week.

Yet the fundamental story behind Palantir Technologies remains far from one‑sided. D.A. Davidson kept a Hold rating on the stock, while William Blair’s Louie DiPalma reiterated an Outperform stance, arguing that the latest pullback improves the long‑term risk‑reward. He points to a newly confirmed 10‑year, roughly $1 billion Airbus Skywise renewal and other large multi‑year deals with Lumen, the U.S. Navy, and the UK Ministry of Defence as evidence of growing recurring revenue and rising free cash flow. Wall Street overall still rates Palantir a Moderate Buy, with average price targets implying significant upside from current levels, suggesting that this week’s slide reflects a sentiment reset more than a collapse in the company’s underlying business.