The Palantir Plunge

Palantir is experiencing significant declines, facing its worst two-day performance since 2022 due to shifts in share sales plans and concerns over proposed defense cuts. Analysts suggest that patience is needed as the stock might retest crucial support levels between $84 and $85, where buyers could re-enter if the price holds. The stock's high valuation, with trailing and forward P/E ratios soaring, adds pressure as investors reevaluate their positions in response to negative market sentiment. The unique circumstances surrounding Palantir reflect broader concerns affecting momentum stocks in the current volatile market landscape.