Palantir Stock Declines 20% from Highs Amid Valuation Concerns

Dec 3, 2025

Palantir Technologies' stock has fallen by about 20% from its highest point this year. The share price recently dropped to $167, down from its year-to-date high of $207. Over the last month, Palantir shares have lost about 17%.

Valuation concerns are one factor weighing on Palantir's stock. However, some investors have shown renewed interest by purchasing more call options compared to puts this week, indicating a mix of caution and optimism among traders.

Despite recent volatility, Palantir shares gained over 6% in the past five trading sessions, partially recovering from earlier losses. The company's long-term future continues to attract attention, as some investors debate its potential for significant growth in the years ahead.

Why has Palantir's stock price dropped recently?

The stock has declined mainly due to concerns about whether the company's current valuation can be justified by its growth.

Are investors still interested in Palantir?

Yes, some investors are buying more call options on Palantir, showing interest in the stock despite its recent drop.

What does it mean when a stock falls by 20% from its high?

A 20% drop from a recent high is often considered to be a local bear market, which means the stock is experiencing a significant short-term decline.

Sources
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