Palantir Technologies (NASDAQ:PLTR) Shares Down 5% – Here’s Why

Palantir Technologies Inc. (NASDAQ:PLTR)’s share price dropped 5% during mid-day trading on Wednesday . The stock traded as low as $157.24 and last traded at $157.35. Approximately 43,692,669 shares were traded during trading, an increase of 17% from the average daily volume of 37,477,094 shares. The stock had previously closed at $165.70.

Trending Headlines about Palantir Technologies

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

• Positive Sentiment: Commercial traction and partnerships remain a tailwind — Palantir continues to win commercial deals and expands AIP deployments; a visible example is the Innodata data/annotation deal that supports Palantir’s AI platform and signals ongoing enterprise adoption. Innodata Selected by Palantir
• Positive Sentiment: Earnings expectations are high but supportive of the story — analysts and previews expect strong Q4 revenue growth (consensus and previews cite roughly ~60%+ YoY revenue growth and rising EPS), which could validate the AI-driven growth thesis if results beat. Zacks Q4 Preview
• Neutral Sentiment: Options and implied volatility point to a big move — the options market is pricing for a double‑digit swing around earnings, meaning elevated risk/reward for short‑term traders but not necessarily a directional signal. Investopedia on implied move
• Neutral Sentiment: Founder comments and media chatter (e.g., on Elon‑linked corporate moves) are getting airtime but are unlikely to be material to near‑term fundamentals; monitor for headlines but prioritize earnings and contract updates. Fox interview
• Negative Sentiment: Broader software/AI sector selloff is pressuring PLTR — sector weakness is amplifying outflows from richly valued AI names and contributing to today’s decline. Benzinga on software rout
• Negative Sentiment: Reputational and political risk (ICE contracts) is resurfacing — renewed headlines about government work can sap sentiment, potentially slowing federal contract momentum or triggering short‑term selling. MarketBeat reality check
• Negative Sentiment: Technical damage: PLTR broke key supports (200‑day MA and the $150 area) and formed bearish patterns; higher volume on the pullback suggests profit‑taking and raises the odds of further near‑term downside if earnings disappoint. Benzinga technicals
• Negative Sentiment: Valuation remains a double‑edged sword — PLTR trades at a very high multiple (P/E elevated vs. peers), so even a good print that falls short of lofty expectations could trigger outsized selling; some analysts even flag deep downside scenarios. Analyst warning

Analyst Ratings Changes

A number of equities research analysts recently weighed in on PLTR shares. Cantor Fitzgerald boosted their price target on shares of Palantir Technologies from $155.00 to $198.00 and gave the company a “neutral” rating in a research report on Tuesday, November 4th. Citigroup raised Palantir Technologies from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $210.00 to $235.00 in a research report on Monday, January 12th. Mizuho increased their price target on shares of Palantir Technologies from $165.00 to $205.00 and gave the stock a “neutral” rating in a research note on Tuesday, November 4th. Royal Bank Of Canada lifted their price objective on shares of Palantir Technologies from $45.00 to $50.00 and gave the company an “underperform” rating in a research note on Tuesday, November 4th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of Palantir Technologies from $160.00 to $200.00 and gave the stock a “hold” rating in a research note on Tuesday, November 4th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $184.07.

Palantir Technologies Stock Performance

The firm has a market capitalization of $349.39 billion, a price-to-earnings ratio of 349.03, a PEG ratio of 3.82 and a beta of 1.54. The firm has a fifty day moving average price of $176.13 and a 200 day moving average price of $173.41.

Palantir Technologies (NASDAQ:PLTR) last released its quarterly earnings data on Monday, November 3rd. The company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.04. Palantir Technologies had a return on equity of 15.48% and a net margin of 28.11%.The firm had revenue of $1.18 billion during the quarter, compared to analysts’ expectations of $1.09 billion. During the same quarter in the prior year, the business posted $0.10 earnings per share. Palantir Technologies’s revenue was up 62.8% compared to the same quarter last year. Research analysts predict that Palantir Technologies Inc. will post 0.31 earnings per share for the current fiscal year.

Insider Activity at Palantir Technologies

In related news, insider David A. Glazer sold 15,557 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $163.99, for a total value of $2,551,192.43. Following the completion of the transaction, the insider directly owned 415,612 shares of the company’s stock, valued at $68,156,211.88. This trade represents a 3.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Ryan D. Taylor sold 36,048 shares of Palantir Technologies stock in a transaction on Monday, November 24th. The stock was sold at an average price of $162.36, for a total value of $5,852,753.28. Following the transaction, the insider directly owned 251,409 shares of the company’s stock, valued at approximately $40,818,765.24. This represents a 12.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,023,444 shares of company stock valued at $167,394,629 in the last ninety days. Company insiders own 9.23% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Revolve Wealth Partners LLC acquired a new position in shares of Palantir Technologies during the 4th quarter worth approximately $450,000. Bison Wealth LLC increased its position in Palantir Technologies by 37.4% during the fourth quarter. Bison Wealth LLC now owns 17,130 shares of the company’s stock worth $1,296,000 after buying an additional 4,667 shares in the last quarter. Capstone Wealth Management Group LLC raised its holdings in shares of Palantir Technologies by 38.0% in the first quarter. Capstone Wealth Management Group LLC now owns 17,147 shares of the company’s stock worth $1,447,000 after acquiring an additional 4,722 shares during the last quarter. Park Place Capital Corp lifted its position in shares of Palantir Technologies by 48.1% in the second quarter. Park Place Capital Corp now owns 308 shares of the company’s stock valued at $40,000 after acquiring an additional 100 shares in the last quarter. Finally, Truist Financial Corp boosted its stake in shares of Palantir Technologies by 4.2% during the second quarter. Truist Financial Corp now owns 537,000 shares of the company’s stock valued at $73,204,000 after acquiring an additional 21,809 shares during the last quarter. Hedge funds and other institutional investors own 45.65% of the company’s stock.

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.