Palantir Is the Worst S&P 500 Stock Today. The AI Darling Is Mired in a Mini-Slump.

Palantir has fallen for five straight sessions. (AFP via Getty Images)

Palantir Technologies was the worst performer in the S&P 500 on Tuesday, with the stock continuing to surrender gains following a blowout earnings report earlier this month.

Palantir stock was down 9% to $158.72 on Tuesday, marking the fifth straight trading day shares have dropped. The stock has declined 12% over that period.

Created with Highcharts 9.0.1Palantir TechnologiesSource: FactSetAs of Aug. 19

Created with Highcharts 9.0.1March 2025Aug.6080100120140160180$200

There was no obvious catalyst for the selloff, but it is possible some investors have been taking profits after an astounding bull run for the artificial-intelligence software company. The stock has climbed 118% this year and an eye-watering 409% over the past 52 weeks, driven by government contract wins, excitement around AI, and strong earnings.

That rise has made Palantir extremely pricy. Shares now trade at a multiple of 214 times expected earnings over the next 12 months, compared to an S&P 500 average of 22 times earnings.

Wall Street has had a tricky time evaluating the company given its sky-high valuation. Of the 29 analysts polled by FactSet, seven say the stock is a buy, four have sell-equivalent ratings, and the majority are at hold. Price targets range from $45 to $210.

Write to Nate Wolf at nate.wolf@barrons.com