On June 5, Palantir Technologies fell 3.12% in regular trading, trading at $137.405/share, with trading volume of $17.1 billion. The decline came amid a broad sell-off in the application software sector, compounded by persistent valuation controversy surrounding the stock.
On the sector front, application software names saw widespread weakness, with Strategy down 9.03%, IREN Ltd down 12.34%, and Circle Internet down 9.08%. Despite Palantir disclosing a deepened ecosystem partnership with Google Cloud at its AIPCon conference this week and securing multiple million-dollar enterprise contracts — with Wedbush issuing a positive note calling it on a golden path of the AI revolution — selling pressure remained dominant.
The valuation debate continues to weigh heavily. Prominent investor Michael Burry recently reiterated his bearish stance, holding put options expiring in December and June of next year with strike prices at $100 and $150, respectively, arguing the stock's intrinsic value is roughly one-sixteenth of its current price. With a forward P/E near 100x and price-to-sales at 43.5x, bears contend that competition from rivals such as Anthropic poses material risk to the AI premium embedded in the stock.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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