Palantir Falls Below Key Support at $128.70

Palantir Technologies shares fell to $126.90 on June 18, moving below the $128.70 support level after a June 1 high of $162.35. Selling pressure pushed the stock under that technical threshold.

Market analysts point to three factors behind the pullback: weakness among large software peers facing competition from new artificial intelligence tools; a valuation reset — Palantir’s forward price-to-earnings ratio is about 146 on a GAAP basis and 88 on a non‑GAAP basis, versus roughly 23 for the S&P 500; and profit-taking after a rapid prior gain.

The stock is about 40% below its all-time high, after rising more than 3,000% from a 2023 low to the June peak.

Financial results for the first quarter showed continued revenue and profit growth. U.S. commercial revenue rose 133% year over year to $595 million, government revenue increased 84% to $687 million, and total revenue grew 85% year over year. The company reported net income of about $870 million for the quarter, a net margin near 43%. Analysts’ consensus estimates put full-year revenue near $7.72 billion and roughly $11.2 billion next year; some projections model revenue reaching $20 billion by 2030. The company is participating in government programs, including the Golden Dome project.

Technically, the stock moved below its 50-day moving average and the lower boundary of a horizontal trading channel at $128.70. Momentum indicators such as the MACD have fallen below zero and are trending lower. If selling intensifies and holders liquidate positions, the next support level near $120 could be tested.

Near-term price action will depend on whether buyers step in at current levels, upcoming earnings or guidance updates, and broader investor sentiment on software and high-growth names.