Palantir Stock Slides 9%, Extends Losing Streak as AI Rally Cools

Palantir Technologies (PLTR) shares extended their downturn on Wednesday, falling more than 9% in early trading. The drop marks the sixth straight session of losses, pushing the stock down nearly 22% from its all-time high reached earlier this month.

AI Stocks Face Market Pressure

The selloff comes as enthusiasm for artificial intelligence names cools across Wall Street. The Nasdaq also slid Wednesday, weighed down by declines in AI-linked stocks. Palantir, a key player in data analytics with strong ties to U.S. government contracts, has been one of the sector’s most volatile names.

Shares peaked at $190 on August 12 but have since been dragged lower amid profit-taking and a broader rotation out of hot tech trades. Despite the pullback, Palantir remains up more than 110% for 2025.

Technical Levels in Focus

Traders are now watching the 50-day moving average closely. A sustained break below that level would signal further weakness. Palantir’s Relative Strength Rating sits at 98 out of 99, while its Composite Rating is also 98, suggesting it remains a top-ranked stock despite the correction.

The stock’s 21-day Average True Range (ATR) is 4.26%, reflecting its high volatility. According to IBD, ATRs below 8% are considered manageable for growth investors, though Palantir’s recent swings highlight the risks tied to momentum-driven trades.

Short Sellers and Valuation Concerns

Investor sentiment has also been shaped by short seller Andrew Left of Citron Research, who recently announced he is betting against further gains in Palantir, citing valuation concerns.

Adding to the cautious mood, OpenAI’s CEO warned this week that an AI “bubble” could soon burst, reinforcing worries that the sector may have overheated.

Palantir’s Outlook

Despite the recent selloff, Palantir’s long-term story still rests on two pillars:

• Potential growth in U.S. government contracts under the Trump administration.
• Rising interest from retail investors betting on generative AI.

The key question now is whether commercial revenue growth will catch up to investor expectations—or if the AI trade has run too far, too fast.

More… 

• https://seekingalpha.com/article/4815100-palantir-its-unlikely-to-end-well-rating-downgrade
• https://www.investors.com/news/technology/palantir-stock-correction-falls-sixth-straight-day
• https://finance.yahoo.com/news/palantir-stock-falls-9-extending-losing-streak-to-5-trading-days-as-tech-trade-cools-190329247.html