Back to blog

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.

pltr_us

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.

nvda_us

Nvidia stock price performance over the last five years*

msft_us (1)

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/

Read more

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

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.
Micron Continues Last Year’s Trend: What Is Driving the Growth of This Giant?

Micron Continues Last Year’s Trend: What Is Driving the Growth of This Giant?

January 19, 2026
Shares of Micron Technology have gained approximately 27% since the beginning of the year*. This sharp rise can be defined as a direct reaction to signals from the broader semiconductor ecosystem, particularly following strong quarterly results from TSMC, which confirmed that investments in AI infrastructure are far from over. As one of the few key manufacturers of memory and storage solutions, Micron stands at the very center of the technological transformation. But will this growth continue into 2026?
European Defense Strategy as a Renewed Investment Pillar

European Defense Strategy as a Renewed Investment Pillar

January 12, 2026
Defense spending in the European Union has definitively shifted in recent years from the margins of political and investment interest to the center of attention. A combination of persistent geopolitical threats, the armed conflict in Ukraine, growing doubts about the long-term security commitments of the United States toward NATO, and a historical investment deficit is creating an environment in which Europe has no alternative but to significantly strengthen its own defense capabilities. Which companies are likely to benefit the most?
SpaceX Heads for the Stock Market in 2026: Potentially the Largest IPO in Market History

SpaceX Heads for the Stock Market in 2026: Potentially the Largest IPO in Market History

January 5, 2026
After years of speculation, SpaceX’s stock market debut is beginning to look like a reality. Elon Musk, the company’s founder and current CEO, confirmed that reports about a planned IPO are true, with the market already factoring in a potential valuation of up to USD 1.5 trillion. If these estimates materialize, SpaceX would surpass Saudi Aramco’s 2019 IPO record and go down in history as the largest public offering ever. [1]