TLDR
- Palantir dropped nearly 7% on Monday, closing at $119.50 — its lowest close since May 2025.
- The stock broke below the $127 support level it had held since February.
- PLTR is now down 32% year-to-date and 41% from its all-time high of $207.18.
- The drop came alongside sector-wide pressure driven by fears AI will undercut enterprise software models.
- Wall Street maintains an average Overweight rating with a $189.87 price target, implying 57% upside.
Palantir (PLTR) closed at $119.50 on Monday, down nearly 7% on the day — its lowest close in more than a year. The stock hit an intraday low of $119.20.
Palantir Technologies Inc., PLTR
That close puts it below the $127 level that had acted as a floor since February. Breaking that support is the kind of move technical traders watch closely, and it raises the question of where the next floor might be.
The 50-day moving average sits around $138. The 200-day is near $160. Both are now well above where the stock is trading.
This was part of a broader selloff in enterprise software. Alphabet fell roughly 6%, Microsoft slipped, and Salesforce is now down around 43% year-to-date. Adobe has lost about 49% over the past year.
The backdrop? A persistent market fear that AI agents will eat into the subscription-based model that most enterprise software companies depend on.
That fear got louder the previous week when Accenture dropped nearly 20% in a single day after cutting its growth outlook and specifically citing AI as compressing demand for traditional IT services.
The Valuation Problem
Even after losing 32% this year, PLTR isn’t cheap. The stock trades at a forward price-to-earnings ratio of 73.50 times. The S&P 500 sits at 20.86 times for comparison.
The stock is now down 41% from its record closing high of $207.18, set on November 3, 2025.
For context, the S&P 500 is up 9.3% this year. The Nasdaq is up 13%. Palantir is moving in the opposite direction.
Jim Cramer weighed in after CNBC’s Sarah Eisen interviewed CEO Alex Karp. Despite being a long-time supporter of the stock — and one of the first to call a move above $100 — Cramer was blunt: “I love Palantir… after Sarah’s excellent interview, I thought there might be some mojo. No mojo.”
What Wall Street Still Thinks
Despite the pain, analyst sentiment hasn’t completely turned. Of 33 firms tracked by FactSet, 17 rate PLTR a Buy and three rate it Overweight. Eleven have a Hold, and two have a Sell.
The average price target is $189.87 — that’s 57% above where the stock is trading now.
UBS reiterated a Buy rating on June 16 with a $200 price target. The bank argued that Palantir’s Ontology platform remains difficult for AI competitors, including OpenAI, to replicate.
There was a brief moment of hope last week. Seven days before Monday’s drop, PLTR gained 5.2% after Treasury yields fell when the Trump administration announced a deal to reopen the Strait of Hormuz. Rate-sensitive software stocks tend to move with the 10-year yield.
The 10-year Treasury recently dropped to 4.41%, its lowest since mid-May — which should, in theory, help valuations in this sector.
For those tracking the longer view: a $1,000 investment in Palantir five years ago would be worth around $4,701 today, even after this year’s slide.
PLTR last closed at $119.50.
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