"Extreme valuation multiples: The stock trades at a P/E ratio exceeding 200 with a price-to-sales ratio of 68.77, leaving zero room for growth deceleration. Political and budget risk: Investors worry that shifting government spending priorities could threaten Palantir's 66% growth in U.S. government revenues, which rely heavily on Department of Defense contracts. Insider selling wave: Multiple executives sold shares throughout the decline, with no insider purchases to signal confidence at lower prices."
"UBS reduced its price target from $205 to $180 while maintaining a Neutral rating, acknowledging "astounding" performance but expressing caution on valuation. Meanwhile, Michael Burry warned PLTR could fall 58% based on technical patterns, though Norway's $2 trillion sovereign wealth fund contradicted this view by establishing a $5.15 billion stake. The Palantir ($PLTR) Paradox: I ran a Reverse DCF, and the math is terrifying byu/[author] instocks"
Shares of Palantir fell to just below $133, down about 25% over the past month despite reporting 70% total revenue growth and a 137% increase in U.S. commercial revenues in Q4 2025. Reddit sentiment shifted from bullish to bearish with mentions spiking around three posts: 'The Palantir Paradox: I ran a Reverse DCF, and the math is terrifying' (294 upvotes), 'Wow! Almost 15% Dip' (593 upvotes), and 'Shifting Political Winds Could Endanger Palantir's Revenue' (193 upvotes). Investors cite extreme valuation multiples, political and budget risk tied to Department of Defense contracts, and insider selling. UBS trimmed its price target from $205 to $180 while keeping a Neutral rating. Michael Burry warned of a possible 58% decline, while Norway's sovereign wealth fund acquired a $5.15 billion stake.
Read at 24/7 Wall St.
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