Palantir shares have dropped more than 40% from the $207.52 record set on November 3, 2025, even though revenue growth remains strong. Higher discount rates on future earnings, not weaker results, are driving the pullback.
Palantir Technologies shares have dropped more than 40% from the $207.52 record they hit on November 3, 2025, with the stock recently changing hands between $122 and $126. That range would have looked implausible during last fall's rally.
Revenue keeps climbing as the multiple compresses
The underlying business keeps expanding. Revenue has grown more than 70% year-over-year in recent quarters. US commercial revenue has climbed more than 100% during certain periods. Management also lifted its fiscal year 2026 guidance to roughly $7.2 billion or more.
But the stock's stretched valuation tells a different story. Shares changed hands at more than 250 times forward earnings at the November peak. They later fell to a 52-week low of $106.37 in June 2026, nearly 49% below that peak.
Higher rates squeeze future earnings
Rising interest rate considerations and persistent inflationary pressure have led investors to recalculate what future earnings are worth today. This squeeze lands hardest on companies like Palantir, whose valuation leans almost entirely on growth still to come.
Government ties and new AI partnerships
CEO Alex Karp has kept the company in the headlines: a Nvidia partnership unveiled in July 2026 covers secure AI offerings, building on Palantir's enterprise AI footprint. Separately, the firm joined the US State Department's Freedom Tech Excellence Program, adding to its government ties.
Its Foundry platform now serves industries spanning healthcare to manufacturing. Palantir also runs a Foundry for Crypto offering and has previously accepted Bitcoin as payment, though those crypto-linked efforts have had little bearing on the stock's recent moves.
A thinner but still elevated safety margin
Multiples still sit above the broader software sector's average, though they are more digestible than nine months ago. Meanwhile, government contract revenue gives Palantir a floor many pure-play software peers lack, since federal spending on AI and data analytics does not hinge on the broader economy's direction.
The $106.37 June low may or may not hold if macro conditions deteriorate further.
Source: Crypto Briefing
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