Palantir (PLTR) has been on fire this year, riding the AI wave and soaring to nearly $190 a share. But the stock has since tumbled more than 12% in just a week, sparking some nerves among investors.
What’s behind the drop? Mainly valuation worries and profit-taking. After such a huge run-up, many feel the stock is priced way ahead of its fundamentals. A short-seller even called it “delusional” at current levels, adding fuel to the sell-off.
So, will it bounce back? Maybe. Palantir’s business is still strong, with big defense contracts and growing commercial adoption. But in the near term, the stock may stay choppy as the hype cools off.
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