Palantir Technologies shares drop over 40% since November peak as AI darling faces valuation reality check

Palantir Technologies, one of the most celebrated AI stocks of 2025, has given back more than 40% of its value since hitting an all-time high of $207.52 on November 3, 2025. The stock was recently trading in the $122 to $126 range, a level that would have seemed unthinkable during its euphoric run last fall. The numbers tell two very different stories On the operational side, Palantir looks like a company firing on all cylinders. Year-over-year revenue growth has exceeded 70% in recent quarters. US commercial revenue, the segment Wall Street watches most closely, surged by more than 100% during certain periods. The company raised its fiscal year 2026 guidance to roughly $7.2 billion or more. But here’s where the math gets uncomfortable. At its November peak, Palantir was trading at more than 250 times forward earnings. The stock even touched a 52-week low of $106.37 in June 2026, a drop of nearly 49% from peak to trough. Why strong fundamentals aren’t enough right now Rising interest rate considerations and persistent inflationary pressures have made investors recalculate the present value of future earnings. A dollar of profit five years from now is worth less today when discount ...