After multiple years of strong gains, Palantir Technologies (NASDAQ: PLTR) stock has begun to decline in 2026.
Thus far, it’s down around 28%
The tech company has been posting strong results driven by heightened demand from opportunities stemming from artificial intelligence (AI). Its growth rate has been impressive, and CEO Alex Karp hasn’t been shy when talking up the company’s future growth prospects. However, even another round of strong quarterly results may not be enough to lift the stock out of its current tailspin.
Instead, here’s why I think it’ll hit a new 52-week low after the company posts its latest numbers next week, on Aug. 3. Palantir’s valuation has centered on hype, which seems to be fading At the beginning of the year, Palantir’s stock traded at well over 250 times its trailing earnings. Investors didn’t care about the valuation because it was doing so well; it was thriving due to AI demand, and expectations were that the growth would remain relentless.