What Happened?
Shares of data-mining and analytics company Palantir (NYSE:PLTR) fell 10.1% in the afternoon session after markets tumbled, extending the weakness from the previous week as concerns over the ongoing trade war continued to spread. Over the weekend, President Trump fielded questions regarding recession worries on FOX News, calling the market struggle "a period of transition," but that didn't do much to calm investors. The sell-off was particularly pronounced in the tech sector, with the Nasdaq falling 3% into correction territory, while the S&P 500 also posted a 2% decline.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Palantir? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Palantir’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. But moves this big are rare even for Palantir and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 5.6% on the news that Wedbush analysts reaffirmed their Buy rating, suggesting they were unshaken in their resolve, after the company appeared to have surrendered most of its post-earnings (Q4 2024) stock gains amid worries about government budget cuts. The analysts highlighted Palantir's ability to win a bigger share of the remaining pie, citing its AI capabilities and involvement in key military projects.
Palantir is up 0.8% since the beginning of the year, but at $75.81 per share, it is still trading 39.2% below its 52-week high of $124.62 from February 2025. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment worth $7,980.
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