PLTR Down 15% In A Week. How Confident Are You In The Stock?
Palantir Technologies (PLTR) stock is down 15.4% in 5 trading days. The stock still looks expensive which, combined with history of sub-par recovery following large dips, suggests risk. Consider the following data:
- Size: A $369 Bil company with $3.4 Bil in revenue currently trading at $156.01.
- Fundamentals: Last 12 month revenue growth of 38.8% and operating margin of 16.6%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.8
- Valuation: Currently trading at P/E multiple of 483.4 and P/EBIT multiple of 647.9
- Has returned (median) -7.4% within a year following sharp dips since 2010. See PLTR Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for PLTR, see Buy or Sell PLTR Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and PLTR drops another 20-30% to $109.21 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Palantir Technologies (PLTR) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: PLTR provides software platforms that help the intelligence community identify hidden data patterns and support counterterrorism investigations and operations through seamless analyst-to-operator collaboration.
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2022 Inflation Shock
- PLTR stock fell 84.6% from a high of $39.00 on 27 January 2021 to $6.00 on 27 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 October 2024
- Since then, the stock increased to a high of $186.97 on 12 August 2025 , and currently trades at $156.01
| PLTR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -84.6% | -25.4% |
| Time to Full Recovery | 646 days | 464 days |
2020 Covid Pandemic
- PLTR stock fell 53.9% from a high of $39.00 on 27 January 2021 to $17.96 on 20 December 2021 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 October 2024
| PLTR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -53.9% | -33.9% |
| Time to Full Recovery | 1018 days | 148 days |
Worried that PLTR could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.