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Palantir Under Pressure: Correction and Tension Between Valuations and Market Expectations

December 1, 2025

The technology sector experienced a noticeable cooldown in November, with Palantir becoming one of the most visible victims of the correction. The company, presenting itself in recent quarters as one of the new leaders in AI infrastructure, saw its stock fall by 16%, marking its worst monthly performance since August 2023. However, this decline was not caused by a deterioration in fundamentals – quite the opposite, Palantir once again exceeded Wall Street’s expectations. So, what triggered the downturn? Palantir Under Pressure: Correction and Tension Between Valuations and Market Expectations

Prices Slow Down

To begin with, it is essential to highlight the general fact that corrections are a natural part of price development in financial markets, and every investor should be fully aware of their potential occurrence. Currently, as suggested in the introduction, the downward movements do not represent any significant drop in the intrinsic value of companies; it is rather a technical correction. Evidence lies in Palantir’s latest quarterly results – the company recorded its second consecutive quarter with revenues exceeding 1 billion dollars.

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Palantir stock price performance over the last five years*

On the other hand, the situation is also influenced by the traditional profit-taking of investors after a strong year. For comparison, Nvidia saw a decline of 12%, Microsoft by 5%.* The only bright exceptions that remained in positive territory within the Magnificent Seven group in November were Apple and Alphabet.

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Nvidia stock price performance over the last five years*

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Microsoft stock price performance over the last five years*

Michael Burry vs. Palantir

The drop in the stock price further intensified the conflict between Palantir and well-known investor Michael Burry. Burry, best known for predicting the 2008 financial crisis, is currently openly betting against both Palantir and Nvidia. He argues that tech giants are artificially inflating profits and that the entire AI sector has unrealistic growth expectations.

Alex Karp, Palantir’s CEO, responded unusually sharply. Within a single week, he appeared on CNBC twice and accused Burry of market manipulation, calling his behavior unfair.

New Contracts and the Future of Palantir

In recent weeks, Palantir has also announced several important partnerships – a multi-year contract with PwC aimed at supporting AI adoption in the United Kingdom, and an agreement with FTAI focused on optimizing aircraft engine maintenance. These deals confirm that Palantir is strengthening its position as a player capable of combining its software, AI solutions, and partnerships with major clients, which is essential given Palantir’s current position.

The key risk for investors remains the company’s high valuation in terms of the price-to-future-earnings ratio, which stands at 233 times. On one hand, this may evoke a premium price, but it is also important to note that the company only recently entered its profitable phase in 2023, making the high level understandable. Therefore, moving forward, attention should be focused primarily on the pace of securing new contracts.

Disclaimer! This marketing material is not and must not be understood as investment advice. Data related to the past are not a guarantee of future returns. Investing in a foreign currency may affect returns due to fluctuations. All securities transactions can lead to both profits and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which may change. These statements do not guarantee future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia.

*Data related to the past are not a guarantee of future returns.

Sources:

https://www.cnbc.com/2025/11/28/palantir-ai-selloff-worst-month.html

https://www.cnbc.com/2025/11/03/palantir-pltr-q3-earnings-2025.html

https://www.cnbc.com/2025/11/11/big-short-investor-michael-burry-accuses-ai-hyperscalers-of-artificially-boosting-earnings.html

https://investors.palantir.com/news-details/2025/Palantir-and-PwC-UK-Sign-a-Multi-Year-Multi-Million-Pound-Deal-to-Accelerate-AI-Transformation-as-Preferred-Partners-in-the-UK/

Palo Alto Networks under pressure: AI acquisitions raise costs and squeeze profitability

February 23, 2026

Palo Alto Networks is among the biggest players in cybersecurity and, in recent years, has been built around a simple goal: to be a platform that covers as many security needs at once as possible. In practice, this means rapid expansion of the portfolio, a strong emphasis on automation, and increasingly also security for AI applications and AI agents. However, this strategy comes at a clear cost. Acquisitions accelerate growth and expand the addressable market, but they also bring integration costs, higher spending on development and sales, and short-term pressure on margins. That is exactly what has become the main theme around PANW shares in recent weeks.

Gen Z Darling in Trouble: As Pinterest’s Popularity Hits Records, Investors Count Losses

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In the investment world, it is generally true that even a historical maximum in platform popularity may not be enough if unfavorable macroeconomics come into play. Pinterest is currently at exactly this paradoxical point. Although its ecosystem has never been more extensive, Q4 financial results and an uncertain outlook for early 2026 triggered a wave of sell-offs.

Amazon in the Era of AI Investments: Record Revenues Versus a USD 200 Billion Bet on the Future

February 9, 2026

In the investment world, it is often said that markets look forward, not backward. Amazon’s economic results for the fourth quarter of 2025 are a perfect example of this principle. Although the technology giant delivered historically record revenues and confirmed the expansion of its key divisions, the share price reacted with a relatively sharp decline.* The reason, however, lies not in the past, but in an ambitious investment plan for 2026.

Czechoslovak Group (CSG) Successfully Lists on the Stock Market: What Are the Next Prospects?

January 26, 2026

Czechoslovak Group (CSG), a Czech defense group with over 30 years of tradition, has successfully made its way onto the Amsterdam Stock Exchange, marking the start of its journey to become a leader in the global defense industry. Following its Initial Public Offering (IPO), CSG’s shares increased by 31.4%, raising the company’s market capitalization to approximately CZK 770 billion.* CSG has thus immediately surpassed ČEZ, a clear indicator of its growing strength and investment appeal.

David Matulay

Analyst

David Matulay is an analyst at InvestingFox. He joined the company in 2023 as Head of Trading and Portfolio Manager. Prior to that, he gained three years of experience as a financial analyst at Advena Hedge Fund.
David graduated in Industrial Informatics from the Secondary Industrial School of Electrical Engineering in Bratislava and in Finance, Banking and Investing from the University of Economics in Bratislava. He is currently studying international and diplomatic studies at the University of International and Public Relations in Prague.

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