<\/p>\n
Palantir Technologies (PLTR) just delivered one of the strongest quarters in software, and its stock is sliding anyway.<\/p>\n
Shares of the artificial intelligence company fell about 13% in five trading days, closing near $136 on June 8 after trading above $158 a week earlier.<\/p>\n
That kind of drop usually follows a bad earnings report, but Palantir\u2019s was the opposite.<\/p>\n
Revenue grew 85% year over year in the first quarter, the fastest pace since the company went public in 2020, and management raised its full-year outlook.<\/p>\n
Yet the stock keeps falling, and the warning signs are coming from multiple sources.<\/p>\n
A famous short-seller flagged a topping pattern on the chart. Insiders keep selling. And one analyst has put a hard number on the downside.<\/p>\n
What the technical signals are flashing about Palantir stock<\/p>\n
Palantir is flashing sell signals from both its short- and long-term moving averages, gauges that track average price over recent weeks and months. <\/p>\n
The setup shows that a further 8.46% decline is possible over the next three months, with shares likely between $108.87 and $146.21.<\/p>\n
Palantir is down about 20% so far in 2026, Yahoo Finance data show, even as the broader market has gained some upward momentum.<\/p>\n
In addition to this signal, on June 2, investor Michael Burry, who shorted the 2008 housing market, said Palantir\u2019s chart was forming a head-and-shoulders pattern, a shape analysts read as a sign that a rally may be topping out. He kept his short position.<\/p>\n
Palantir stock has fallen for several straight sessions, despite record first-quarter revenue growth.<\/p>\n
Bloomberg / Getty Images<\/p>\n
What Palantir does and why its strong quarter didn\u2019t lift the stock<\/p>\n
Palantir builds data and AI software, including its Gotham, Foundry, and Artificial Intelligence Platform tools, that help governments and companies consolidate scattered data into a single place and act on it.<\/p>\n
First-quarter revenue reached $1.633 billion, up 85% from a year earlier, according to the company\u2019s filing with the Securities and Exchange Commission (SEC). <\/p>\n
More AI Stocks:<\/p>\n
Oppenheimer sends clear message on Broadcom ahead of earningsApple answers Wall Street\u2019s biggest AI concernOpenAI is reinventing ChatGPT to justify its $1 trillion IPO<\/p>\n
U.S. commercial sales jumped 133% to $595 million, and Palantir lifted full-year guidance to roughly $7.65 billion.<\/p>\n
So, why the selloff? <\/p>\n
The answer is valuation. <\/p>\n
Even after the slide, Palantir trades at near 106x projected 2026 earnings and about 50x sales,\u00a0according to StockAnalysis data. <\/p>\n
At that price, investors are paying for years of growth, so any hint of a slowdown comes off as a disappointment.<\/p>\n
The Palantir bear case: a call for a 51% drop to $103.50<\/p>\n
The most specific warning comes from Motley Fool analyst Keithen Drury. <\/p>\n
In a June 1 note, he argued Palantir could fall to about $103.50 by the end of 2027, a drop of roughly 51%, The Motley Fool reported.<\/p>\n
His math is simple: Wall Street expects Palantir to earn $2.07 a share in 2027. Apply a generous 50x multiple, and the price comes to $103.50. The stock currently trades near 76x those 2027 earnings.<\/p>\n
HSBC made a related point earlier, downgrading Palantir to hold with a $151 target and citing rising competition and pricing pressure in AI software, CNBC reported.<\/p>\n
Insiders have been selling, too. <\/p>\n
CEO Alex Karp sold 397,744 shares on May 20 under a preset 10b5-1 plan, which locks in sales in advance, and no executive has bought on the open market, SEC filings show.<\/p>\n
The bull case keeps Palantir price targets near $193 to $255<\/p>\n
Not everyone is bearish. <\/p>\n
Wall Street\u2019s average price target sits near $193, and most analysts still rate Palantir a buy, TipRanks data show.<\/p>\n
Related: Dell blockbuster orders trigger Palantir stock surge<\/p>\n
Bank of America reiterated a buy and a $255 target after the quarter, calling the results a \u201cstep-function\u201d improvement. <\/p>\n
Citi and Rosenblatt both carry $225 targets, and Wedbush analyst Dan Ives says Palantir could reach a $1 trillion valuation within three years.<\/p>\n
Bulls point to $11.8 billion in remaining deal value and software that is hard to remove once installed, creating switching costs that protect future revenue.<\/p>\n
What Palantir investors should watch before the next earnings report<\/p>\n
The next real test is Palantir\u2019s second-quarter report, due on Monday, Aug. 3, 2026.<\/p>\n
Management guided to about 80% revenue growth, a slight slowdown from 85% in Q1.<\/p>\n
Three Palantir warning signals worth tracking:Technical signals: PLTR\u2019s moving averages are flashing bearish signs, with the setup showing that a further 8.46% decline is possible over the next three months.Insider selling: Karp sold 397,744 shares in May, and no Palantir executive has bought on the open market, according to Securities and Exchange Commission filings.Stretched valuation: Shares trade near 106x projected 2026 earnings, far above the software norm.<\/p>\n
For long-term holders, these signals are not an indication of bad business. <\/p>\n
They simply point out that PLTR’s stock price already reflects years of near-record growth, leaving little margin for error.<\/p>\n
Investors worried about a pullback can wait for the August report before adding more to their positions, while believers in the long-term bull story may build their positions slowly. <\/p>\n
Neither path is risk-free, and your position size should align with your risk appetite.<\/p>\n
Related: Palantir challenges core enterprise software rule with 3 harsh words<\/p>\n
#Palantir #flashes #warning #signal #Wall #Street #ignore<\/p>\n","protected":false},"excerpt":{"rendered":"
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