PLTR Fell 7.5% In A Day. What To Do Now?

Palantir Technologies (PLTR) stock is down 7.5% in a day. The stock looks attractive, but the history suggests it has a hard time recovering within a year following large dips. Consider the following data:

• Size: A $409 Bil company with $3.4 Bil in revenue currently trading at $173.07.
• 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 0.81
• Valuation: Currently trading at P/E multiple of 536.3 and P/EBIT multiple of 718.7
• 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 $121 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock saw an impact slightly 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.

PLTR stock has fallen meaningfully recently and we currently find it attractive but volatile. While this may feel like an opportunity, there is significant risk in relying on a single stock. On the other hand, there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Separately, consider what could long-term performance for your portfolio be if you combined 10% commodities, 10% gold, and 2% crypto with equities.

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.

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 $187.05 on 2 October 2025 , and currently trades at $173.07

 
2020 Covid Pandemic

• PLTR stock fell 22.5% from a high of $29.05 on 25 November 2020 to $22.51 on 2 December 2020 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 22 January 2021

 
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.