Palantir Technologies Stock Drop Looks Sharp, But How Deep Can It Go?
Palantir Technologies (PLTR) stock is down 5.0% in a day. The recent slide reflects renewed concerns around Palantir’s rich valuation and increasing competition for its AIP platform, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Palantir Technologies stands today.
- Size: Palantir Technologies is a $374 Bil company with $3.9 Bil in revenue currently trading at $157.35.
- Fundamentals: Last 12 month revenue growth of 47.2% and operating margin of 21.8%.
- Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.79
- Valuation: Palantir Technologies stock is currently trading at P/E multiple of 341.5 and P/EBIT multiple of 440.2
- Has returned (median) -7.4% within a year following sharp dips since 2010. See PLTR Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside Very High valuation – making the stock Attractive but Volatile. For details, see Buy or Sell PLTR Stock
That brings us to the key consideration for investors worried about this fall: how resilient is PLTR stock if markets turn south? This is where our downturn resilience framework comes in. Suppose PLTR stock falls another 20-30% to $110 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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 $207.18 on 3 November 2025 , and currently trades at $157.35
| 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 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
| PLTR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -22.5% | -33.9% |
| Time to Full Recovery | 51 days | 148 days |
Feeling jittery about PLTR stock? Consider portfolio approach.
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