Palantir (PLTR) Stock: Shares Tumble 40% From February Peak, Buying Opportunity?

TLDR

• Palantir (PLTR) stock tumbled 10% on Monday, now almost 40% off its February 18 record high of $124.62
• Despite recent losses, Goldman Sachs analysts expect Palantir to be among the fastest-growing companies in AI-enabled revenue
• William Blair analysts suggest Palantir is well-positioned to support Trump administration’s government efficiency efforts
• U.S. commercial revenue grew 64% year-over-year in Q4, while U.S. government revenue grew 45%
• Several members of the incoming Trump administration have ties to Palantir, including David Sacks as White House AI and crypto czar

Palantir Technologies saw its stock price plunge 10% on Monday to close at $76.38, extending a steep decline that has erased nearly 40% of the company’s value since reaching an all-time high last month.

The AI analytics company hit a record close of $124.62 on February 18 before beginning its downward slide.

Monday’s losses came amid broader market concerns, with the S&P 500 dropping 2.7% as investors showed uncertainty over the Trump administration’s economic policies.

Despite being one of the S&P 500’s worst performers on Monday, Palantir has still gained about 1% since the start of 2025.

The company’s longer-term performance remains impressive, with the stock price having tripled in value over the past 12 months.

The recent pullback has brought Palantir stock below its 50-day moving average, a key technical support level.

William Blair analyst Louie DiPalma noted that while “valuation is still frothy with potential downside risk of greater than 40% on government contract delays, there have been positive developments.”

DiPalma warned that a potential government shutdown on March 15 could create further downside pressure on the stock.

However, Goldman Sachs analysts remain bullish, suggesting last week that Palantir could be among the fastest-growing companies in terms of AI-enabled revenue over the next two years.

The company showed strong results in its most recent earnings report. U.S. commercial revenue grew 64% year-over-year to $214 million in Q4.

U.S. government revenue also showed robust growth, increasing 45% to $343 million during the same period.

Wall Street currently projects earnings per share of 53 cents for 2025, up 29%, with revenue expected to grow 31% to $3.754 billion.

Palantir may benefit from its connections to the Trump administration. Several incoming administration members have ties to the company co-founded by venture capitalist Peter Thiel.

David Sacks, appointed as White House artificial intelligence and crypto czar, is part of the so-called “PayPal Mafia” along with Thiel and Elon Musk, a key Trump advisor.

The Financial Times has reported that Palantir is benefiting from a “revolving door” of executives moving between the company and high-level government positions in both the U.S. and U.K.

William Blair analysts suggested Palantir could be uniquely positioned to support the Trump administration’s Department of Government Efficiency efforts to trim spending.

They expect Palantir’s AI offerings to become “platforms of choice” for federal agencies creating centralized payment tracking systems.

Palantir has been expanding its AI partnerships. The company recently announced a deal with Elon Musk’s xAI, which has built an AI training model called Grok.

In November, Palantir and startup Anthropic announced a partnership with Amazon Web Services to provide U.S. intelligence and defense agencies access to Claude 3 AI models.

According to reports, Palantir is also in talks with other tech companies, including OpenAI and SpaceX, to form a consortium for joint bidding on U.S. government contracts.

The Information has reported that Palantir is in discussions to invest in drone and software maker Shield AI in its next funding round.

Chief Executive Alex Karp expressed confidence during the company’s fourth quarter earnings call, declaring: “A software juggernaut has indeed emerged.”

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