New York, June 22, 2026, 15:01 EDT
- Palantir Technologies Inc. (NASDAQ:PLTR) slid over 6% in afternoon trading, hitting a new 52-week low close to $119.76.
- The Nasdaq fell as software stocks slumped to their lowest point in more than two months. The drop came while investors questioned AI spending, high rates and valuations.
- Europe’s sovereign-tech effort is becoming a bigger driver for Palantir’s valuation than for its short-term revenue. It’s a pressure point that’s gotten less attention.
Palantir Technologies Inc. (NASDAQ:PLTR) slumped to a 52-week low Monday, deepening losses for the AI software stock as investors pulled back from high-priced growth names.
NASDAQ:PLTR had been trading as a top public-market pick for enterprise AI, but the stock got tested on Monday as the Nasdaq slipped 1.05% by 2:15 p.m. ET. Software names hit their lowest in more than two months, according to Reuters.
Palantir was at $119.95, off 6.63%, at 2:53 p.m. in New York. The stock hit $119.76 earlier in the session. It’s well below its 52-week high of $207.52. Google Finance put its price-to-earnings ratio at 135.15. So investors are still paying about 135 times trailing earnings after the fall.
AI fatigue isn’t the only story behind the split in AI stocks. Markets are putting memory and storage companies in the camp of check collectors from the AI buildout, but software names have to keep proving AI brings steady revenue and pricing power. “There’s a distinguishing aspect of this market between those who are receiving the checks, like memory names and those who are writing the checks,” David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, told Reuters. Reuters
This is a key point for Palantir. The company sells AI infrastructure software, not chips or data center power. Its pitch lands between firms like OpenAI and Anthropic at the front edge of AI, and software companies working on their own data and workflow tools.
Palantir got a downgrade to neutral at Wolfe Research, with analyst Alex Zukin labeling it “the most applied enterprise AI software company,” but also flagged the valuation as the highest in software, Barron’s reports. The main argument for bulls is still Palantir’s Ontology, which maps customer data, decisions, and workflows so AI can be used in operations. Trading shows investors are trying to figure out what the stock is worth. Barron’s
Palantir lifted its 2026 revenue target to a range of $7.65 billion to $7.66 billion last month after first-quarter revenue rose 85% to $1.63 billion. U.S. commercial revenue soared 133% to $595 million, while U.S. government business was up 84% at $687 million. CEO Alex Karp wrote to shareholders that the U.S. is still “the center, the constant core” of Palantir and said it was “erupting.” Reuters
But there’s another risk from Palantir’s strength: the company is leaning harder on U.S. growth as Europe moves to cut American tech out of state systems. France’s DGSI intelligence agency is set to swap Palantir tools for ChapsVision software. Palantir says its contract is still running and any switch will take years. The immediate revenue impact looks muted. The stock could take a hit faster as investors may discount future non-U.S. government business before those deals actually disappear.
Karp keeps pointing the conversation back to execution. “It’s just the implementation is where the value is,” he told Inc., saying large language models still lack a proper business operating layer. That’s Palantir’s pitch too: models aren’t the whole answer. Companies need systems to control who uses them, what data they touch, and which tasks they get. Inc.com
Palantir could run into trouble if the market doesn’t wait for its story to play out at the past valuation. A hotter-than-expected PCE report — that’s the Fed’s preferred inflation reading — might push rate bets higher, putting more pressure on long-duration names that trade on future earnings. Markets were already pricing in a 25-basis-point Fed hike for September, Reuters said.
Palantir still has room to shift sentiment. Bears could lose ground if the company shows more proof that AIP deployments are leading to bigger renewals or that troubles in European sovereign-tech are limited. But Monday’s drop suggests investors are done chasing the AI software story at any price.
