Palantir Technologies (NASDAQ:PLTR) earlier this month became one of the hottest stocks on Wall Street after the data analytics software developer reported $1B in quarterly sales for the first time ever, cementing it as one of the biggest artificial intelligence (AI) plays in the U.S.
However, since hitting a record closing high of $186.97 on August 12, the stock on Tuesday was on track for a five-day losing streak and its worst day since May 6. As of 1500 ET, PLTR’s class A shares were -9.48% at $157.53.
The stock surged into overbought territory after its quarterly report on August 4, hitting a relative strength index (RSI) peak of 80.24 on August 8. An RSI reading above 70 is considered an overbought level. Since then, PLTR has come back down to earth, with its RSI at 56.55 on Tuesday.
Palantir’s (NASDAQ:PLTR) price-to-earnings ratio for 2025, based on Seeking Alpha’s consensus earnings estimates, stands at 268.35. That ratio was 424.46 in 2024.
On August 10, Bloomberg News reported that, following its post-earnings surge, PLTR had become the priciest stock in the benchmark S&P 500 index (SP500).
Despite Tuesday’s decline, Palantir’s (PLTR) class A shares are a whopping +130.1% YTD up to their last close, significantly outperforming the S&P’s (SP500) +9.6% gain.