Experts: These 3 Red Flags Are Worse for Palantir Stock Than Defense Budget Cuts

After a spectacular run in 2024, shares of Palantir (PLTR) have been feeling the heat in recent trading sessions. Investors are worried about the tech stock’s lofty valuation and a challenging macroeconomic environment, ultimately driving PLTR stock down 28% from its all-time high. The selling pressure began on Feb. 19 with a 10% drop and has continued following concerning recent developments. 

First, CEO Alex Karp adopted a trading plan allowing for the sale of nearly 10 million shares of Class A common stock through September 2025. Although it is not uncommon for executives to sell shares using prearranged plans, the timing fed into concerns that Palantir is overvalued.