Palantir drops 10% for worst day since May as investors continue dumping onetime market favorite

Palantir shares tumbled on Monday, building on last week’s declines as the hot trade continued to show signs of sputtering.

The technology and defense stock dropped about 10.5% on Monday, marking its fourth straight losing session and worst day since May. That comes after the stock fell 15% last week.

Last week’s declines came after the company disclosed a new stock sale plan from CEO Alex Karp. Comments from Defense Secretary Pete Hegseth reported by The Washington Post on plans to slash defense budgets also rattled investors of the company, which relies in part on government contracts.

These moves have heightened fears that Palantir, which has seen its popularity among retail investors balloon over recent months, is now falling from grace. Indeed, the stock has plunged close to 24% compared with where it sat a week ago.

Monday’s declines pulled the stock more than 27% below the all-time closing high notched earlier this month.

Still, the stock is up almost 20% so far in 2025, outpacing the S&P 500’s gain of less than 2% during the same period. Palantir was the best performer in the S&P 500 last year with a surge of more than 340%.

Palantir has gained a cult following of individual investors. Experts and company analysts point to Karp’s eccentric persona and the stock’s big runup as two drivers of interest from this group.

On the other hand, the majority of analysts polled by LSEG have a hold rating. The typical price target implies that shares can fall further.