Palantir Technologies ($PLTR) cooled off Friday after an explosive bull run, falling 3.33% to $139.44 as of 1:12 p.m. ET. The pullback comes a day after the stock hit a new all-time high of $148.22, boosted by a major new partnership.
On Thursday, the company revealed a $100 million contract with The Nuclear Company to co-develop a new artificial intelligence system designed to accelerate nuclear construction projects. That announcement triggered a fresh wave of bullish sentiment — but today, some of that euphoria is fading.
A Dose of Budget Reality
Adding to the cooldown, the US Department of Defense’s FY2026 budget request came in at $848.3 billion, a slight decrease from the prior year when adjusted for inflation. With Palantir’s deep government exposure, especially in military AI and intelligence platforms, the news may be weighing on sentiment.
Still, context matters. Even after today’s dip, Palantir is up 83% year-to-date, riding the AI wave and expanding its commercial footprint at pace.
A Premium Valuation — With Risks
Palantir’s current valuation sits at:
- 239x this year’s expected earnings
- 84x expected sales
- Market cap near $328B (down from $340B)
That sky-high valuation leaves little room for error, especially in an environment sensitive to rate shifts and spending slowdowns. But bulls argue the company’s 80% gross margin, strong moat in AI software for defense and critical infrastructure, and growing global contracts give it a long growth runway.
The Takeaway
Today’s sell-off looks more like a classic profit-taking breather than a reversal of trend. Investors locking in gains after a record high is normal — especially given how far Palantir has run. But with macro risks in play and valuation stretched, volatility will likely stay elevated.
For long-term holders, this may simply be a pause in a powerful AI-driven story.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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