This is from research. Please do your own research. Analysts have expressed caution regarding Palantir's stock. For instance, Mizuho analyst Matthew Broome downgraded Palantir's stock from "neutral" to "underperform," citing its increasingly difficult-to-justify valuation and limited visibility into its business

Similarly, Jefferies analyst Brent Thill warned that the stock's "unsustainable multiple" makes it a risky investment at current levels

Conclusion: While Palantir has demonstrated strong financial performance, the combination of high valuation metrics, potential government budget cuts, and insider selling has led to increased investor skepticism. The recent 13% drop in its stock price reflects these concerns and suggests that investors are reassessing the company's prospects in light of these challenges.