Palantir (Nasdaq: PLTR) stock has lost 10% in the last 5 days after fading AI enthusiasm and negativity surrounding insider sales have caught up with a premium valuation. There is a noticeable shift in retail investor sentiment on Reddit, X, and elsewhere as users shift from cautiously optimistic, to exhausted.
It’s not just Palantir. Other AI wunderkinds like Oracle (Nasdaq: ORCL) and Corweave (Nasdaq: CRWV) have fallen 25%, and 45% respectively in just the last month.
Reddit Turns Bearish on Palantir After The Runup
Clearly, the sand has shifted. Look no further than r/wallstreetbets on Reddit, where even though a trader ‘won’, they sound exhausted:
SPX Call/Puts / PLTR puts $8k-$235k YOLO
by
u/EstablishmentSea9172 in
wallstreetbets
The poster wrote: “If you do this for a living idk how, my heart rate was probably 120bpm all week and I probably lost 6 years of my life from stress.” Even those profiting from volatility are burned out. They’re making a decision to “leave the casino”.
The bears have a strong case.
- Palantir trades at a trailing p/e of 1,740 and a p/s of 105x, multiples that dwarf even the most aggressive valuations
- Of 25 analysts covering Palantir only 4 suggesting a buy at current levels
- Insiders have been systematically selling shares through September, October, and November; no insider buying reported in recent months
Valuations Seem Impossible To Justify
With analyst price targets averaging $184.88 and institutional caution mounting, the near-term outlook favors consolidation over continuation of the rally. For investors watching PLTR, the key question is whether current multiples can be sustained or whether a more significant repricing is ahead. Right now, investors are voting with their brokerage accounts and saying “no way”.
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