Palantir Stock Drops for 5 Days in a Row. Is It Time to Buy PLTR?

Palantir (PLTR) has been one of the hottest S&P 500 Index ($SPX) stocks over the past year, rising 378%. Moreover, it has more than doubled so far in 2025. However, the stock has recently come under pressure, declining consistently for five trading days and losing about 19% of its value from its 52-week high of $190.

While PLTR stock has cooled off a bit, it still trades at ultra-high valuation levels. At current levels, PLTR trades at a price-sales ratio of 144.1x and a forward price-earnings multiple north of 400x. These multiples far exceed industry averages and signal caution as they leave little margin for error if growth slows or market sentiment shifts.