Palantir's Struggles Amid AI Stock Sell-Off
Palantir Technologies has faced a challenging November, witnessing a 16% drop in its stock price, marking its worst month in two years. This decline comes as investors are increasingly wary of high valuations in the AI sector, leading to a broader sell-off of AI stocks. Notably, famed investor Michael Burry has taken a position against Palantir, further fueling concerns about the company’s future in a market that appears to be recalibrating its expectations.
Despite starting the month strong with impressive earnings and revenue figures, Palantir’s high valuation has raised red flags among analysts. Jefferies and RBC Capital Markets have expressed skepticism about the company’s growth model, suggesting that investors might find better opportunities elsewhere. CEO Alex Karp’s public defense of the company, including accusations of market manipulation against Burry, highlights the tension surrounding Palantir’s valuation and market perception.
As the AI landscape continues to evolve, investors are left pondering whether Palantir can regain its footing amidst these valuation concerns. Will the company be able to leverage its recent contract wins to reassure investors, or will the ongoing scrutiny lead to further declines? The coming months will be crucial for Palantir as it navigates these turbulent waters.
Original source: https://www.cnbc.com/2025/11/28/palantir-ai-selloff-worst-month.html