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Palantir (PLTR) stock closed down again on Friday, even after President Donald Trump praised the company on Truth Social, saying it has “great warfighting capabilities and equipment.”
Despite the endorsement, PLTR just had one of its ugliest weeks since early 2021, with the 14-day RSI now in the early 30s, indicating the stock is approaching oversold territory.
Still, caution is warranted in buying the dip in Palantir shares, which are currently down about 30% versus their year-to-date high.
Why Did Palantir Stock Sink on Friday?
Investors bailed on PLTR stock today primarily on Anthropic’s release of its Claude Mythos model and multi-agent orchestration product.
Additionally, a viral critique from famed investor Michael Burry, who argued Anthropic is stealing enterprise AI market share from Palantir, continued to sour sentiment on April 10.
Burry pointed to the AI research lab’s explosive growth from just $9 billion to $30 billion in annual recurring sales within months, contrasting it with Palantir's two-decade journey to reach $5 billion.
His core thesis frames PLTR as more of a professional services firm than a scalable software giant, one that relies on embedding engineers at client sites and depends on third-party LLMs rather than proprietary AI tech.
March CPI Makes PLTR Shares Even Less Attractive
Disciplined investors are cautioned against treating Palantir shares’ current weakness as a buying opportunity because they’re still trading at a rather stretched 138x forward earnings.
This valuation multiple is particularly precarious after the U.S. consumer price index (CPI) came in at 3.3% for March — the hottest reading since early 2024.
Subsequently, the 10-year Treasury yield seems to be stabilizing in the 4.3% range, increasing the discount rate for future earnings.
For high-multiple names like Palantir, this “higher-for-longer” backdrop often triggers aggressive valuation contraction as investors become unwilling to pay premium prices for long-term growth.
How Wall Street Recommends Playing Palantir
Despite aforementioned risks, however, Wall Street firms remain constructive as ever on Palantir Technologies.
The consensus rating on PLTR shares sits at a “Moderate Buy” currently, with the mean price target of about $198 indicating potential upside of nearly 55% from here.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
