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Palantir Technologies (PLTR) has seen a dramatic share-price decline by roughly 30% in the past month, reversing its initial 2025 spike. It was among the most notable gainers in 2024 with a return of 341% because investors were upbeat about its artificial intelligence (AI) strengths and rising government contracts. Sentiment on PLTR turned negative in recent weeks because of overall macroeconomic concerns like rising interest rates, trade tensions, and potential decreases in U.S. federal spending.
Even with its sound fundamentals, Palantir’s valuation has come under criticism, with its valuation multiples far above its industry peers. Now investors are debating whether this pullback presents an attractive entry point for the long-term AI leader or if further downside risk is present.