After enjoying several years of solid profits, Palantir Technologies has seen its stock take a downturn. Since the start of 2026, shares have dropped by 19%, a notable contrast to the S&P 500, which has increased by over 4% during the same period.
Not too long ago, data analytics stocks were trading above $200, and Palantir is still achieving remarkable growth, securing numerous deals along the way. Investors appear confused by the recent fluctuations in stock prices, which have been particularly unpredictable. So, what’s likely to happen this year? Will Palantir’s stock bounce back to $200 or slide down to $100?
The new deal, even praise from President Trump, wasn’t enough to significantly boost Palantir’s stock price.
What’s been striking about Palantir’s stock lately is a certain lack of enthusiasm surrounding it. President Trump made headlines recently by praising Palantir’s software, even suggesting that skeptics should “ask the enemy” about its effectiveness. Additionally, the company announced a $300 million contract with the U.S. Department of Agriculture, emphasizing the versatility and potential of its software. Still, despite these promising developments, the stock price hasn’t notably increased. While Trump’s comments helped the stock recover slightly from its lows of around $122, it remains down significantly this year, hinting at investor apprehensions about its high valuation. Palantir’s price-to-earnings ratio sits well above 200.
Palantir stock price could fall further
Palantir is set to report its earnings early next month, and there’s a good chance the results will impress and exceed analyst expectations. However, given its high valuation, expectations are sky-high. If the results don’t meet those lofty standards, the stock might drop even further in the coming weeks.
Moreover, Palantir’s trading price is around 80 times its trailing revenue. With a price-to-earnings (PEG) multiple close to 3x, many metrics suggest it’s a pricey stock to hold. Typically, investors look for top growth stocks with a PEG multiple under 1.
While it’s possible that market speculators might drive Palantir’s stock back to $200 this year, I think it’s more likely we’ll see it slip below $100, especially as the market has been demanding corrections for some time.
Should you buy Palantir Technologies stock now?
Before diving into an investment in Palantir Technologies, it’s worth considering a few factors.
According to analysts from Motley Fool Stock Advisor, they’ve identified 10 stocks they believe are worth buying right now. Palantir Technologies isn’t among them; instead, these stocks are thought to have the potential for substantial returns over the next few years.
It’s essential to reflect on past recommendations as well. For example, if you had invested $1,000 when Netflix was first recommended back in December 2004, you’d be looking at an astonishing $498,522 today. Similarly, an investment in Nvidia since April 2005 would now be worth around $1,276,807.
Notably, the Total average return for Stock Advisor stands at 983%, vastly outpacing the S&P 500’s 200% return, showcasing significant market outperformance. So, don’t overlook their latest top 10 list; it might offer valuable opportunities.
