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Palantir’s (PLTR) solid run has hit a speed bump. After soaring to new highs earlier this year, PLTR stock has slipped nearly 22% from its peak of $207.52. The pullback comes as investors grow uneasy about the company’s stretched valuations and concerns over the artificial intelligence (AI) bubble.
Even with this decline, the stock is still up roughly 112% in 2025, and its valuation is still absurdly high. Palantir stock trades at a price-sales ratio of 128.8x, far beyond the multiples typically associated with even the most profitable technology giants.