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Palantir (PLTR) has been caught in a broader software rout, with shares losing more than 15% in recent weeks as valuation concerns continue to push investors out of the expensive tech names. The selloff seems to be accelerating after industry giant, Microsoft (MSFT) issued lackluster cloud guidance, sparking fears that artificial intelligence (AI) software monetization isn’t keeping pace with infrastructure spending.
The subsequent weakness in PLTR stock has crashed its relative strength index (14-day) to nearly 28. While this technical “oversold” condition often precedes a bounce, the AI data analytics firm remains a high-risk investment ahead of its Q4 earnings scheduled for Feb. 2.