valuation risk
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title.Palantir suffers its worst month in two years amid AI stock slump
.In November, Palantir’s stock fell 16%—its sharpest drop since August 2023—after investors questioned its lofty AI‑related valuation despite a $1 billion‑revenue quarter and beating earnings expectations. Analysts labeled the price “extreme,” and Michael Burry’s short position sparked CEO Alex Karp’s accusations of market manipulation. The firm secured multi‑year deals with PwC and FTAI Aviation, yet trades at ~233× forward earnings versus peers’ 30‑40×. Palantir projects 53% FY 2025 revenue growth, but faces concentration, margin, competition, and valuation risks.
