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Palantir (PLTR) stock closed down again on Friday, even after President Donald Trump praised the company on\u00a0Truth Social, saying it has \u201cgreat warfighting capabilities and equipment.\u201d<\/p>\n
Despite the endorsement, PLTR just had one of its ugliest weeks since early 2021, with the 14-day RSI now in the early 30s, indicating the stock is approaching oversold territory.<\/p>\n
Still, caution is warranted in buying the dip in Palantir shares, which are currently\u00a0down about 30% versus their year-to-date high.<\/p>\n Investors bailed on PLTR stock today primarily on Anthropic\u2019s release of its Claude Mythos model and multi-agent orchestration product.<\/p>\n Additionally, a viral critique from famed investor Michael Burry, who argued Anthropic is stealing enterprise AI market share from Palantir, continued to sour sentiment on April 10.<\/p>\n Burry pointed to the AI research lab\u2019s explosive growth from just $9 billion to $30 billion in annual recurring sales within months, contrasting it with Palantir’s two-decade journey to reach $5 billion.<\/p>\n His core thesis frames PLTR as more of a professional services firm than a scalable software giant, one that relies on embedding engineers at client sites and depends on third-party LLMs rather than proprietary AI tech.<\/p>\n Disciplined investors are cautioned against treating Palantir shares\u2019 current weakness as a buying opportunity because they\u2019re still trading at a rather stretched\u00a0138x forward earnings.<\/p>\n This valuation multiple is particularly precarious after the U.S. consumer price index (CPI) came in at 3.3% for March \u2014 the hottest reading since early 2024.<\/p>\n Subsequently, the\u00a010-year Treasury yield seems to be stabilizing in the 4.3% range, increasing the discount rate for future earnings.<\/p>\n For high-multiple names like Palantir, this \u201chigher-for-longer\u201d backdrop often triggers aggressive valuation contraction as investors become unwilling to pay premium prices for long-term growth.<\/p>\n Despite aforementioned risks, however, Wall Street firms remain constructive as ever on Palantir Technologies.<\/p>\n The\u00a0consensus rating on PLTR shares sits at a \u201cModerate Buy\u201d currently, with the mean price target of about $198 indicating potential upside of nearly 55% from here.<\/p>\n<\/p><\/div>\n