Palantir falls 11%, worst in the S&P 500

Palantir plunged afresh on Thursday amid a broad-based tech stock puke that helped push the Nasdaq Composite Index into a technical correction. (That’s a decline of more than 10% from the tech-heavy index’s recent high, which it hit on December 16, 2024.)

It was the worst day of 2025 for Palantir, whose shares were the best performer in the S&P 500 last year, rising 340%. That romp made it a favorite of retail stock traders.

But that rise — which was supercharged by the election of President Trump — also pushed the company’s valuation to levels that many orthodox investors saw as unsustainable.

In recent weeks that have seen a deep uncertainty related to the Trump administration’s trade and foreign policy, as well as signs of an incipient economic slowdown, the market has started to stumble.

Palantir’s tumble has been far worse after reports that the White House was planning large cuts to defense spending. (Palantir’s largest customer is the US government.)

Continued selling by company insiders, including CEO Alex Karp, has also become a point of debate among some investors.

The stock is down more than 35% since its February 18 high. But OG investors are still sitting on huge gains: Palantir shares are more than 870% higher than they were two years ago.