The stock price of Palantir Technologies Inc., which opened at $155.74 USD on the NASDAQ on Wednesday, crashed more than 10% in intraday trading, hitting as low as 141.48 at one point.
Palanti’s logo is seen in this image taken on August 3, 2025. (Reuters)Wednesday’s decline was the sharpest the company has seen in recent memory, effectively wiping $40 billion from the company’s market cap. The sharp drop came despite a positive Q4 earnings report presented by the company earlier this week where it beat estimates with a 56% revenue growth.
Notably, Palantir wasn’t the only tech company to see its stock price drop sharply on Wednesday. Many other technology stocks, such as Advanced Micro Devices, Aplovin Corp, Western Digital and Micron Technology Inc, also registered a 9% to 10% fall in stock prices.
Why did Palantir’s stock price crash?Palantir’s stock price crashed more than 10% on Wednesday despite a strong Q4 earnings report due to a number of factors. The first is the broader software sector stock selloff that US stock markets are currently witnessing
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The second is, perhaps, some sell-off concerns after the post-earnings report rally in stock prices mentioned earlier. Notably, the stock jumped 6.9% in early Tuesday trading.
Additionally, concerns have also been raised by many experts that Palantir’s stock price is overvalued. Many analysts and valuation models say the stock trades at too high a multiple. Additionally, the stock has risen nearly 300% over the past three years, leading to more hold or sell calls on Wall Street versus strong buys.
Palantir is a data analytics and AI software company that helps governments and businesses make decisions from complex, large-scale data.
