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Palantir (PLTR) shares have been in a sharp downtrend since the start of 2026 as sentiment shifted from enthusiasm about artificial intelligence (AI) software vendors to skepticism about their valuations and competitive positioning.
Despite losing some 25% since early January, Palantir is still trading at a forward price-to-earnings (P/E) multiple of nearly 127x, which makes it notably more expensive to own than industry peers.