Shares of Palantir Technologies Inc (NASDAQ:PLTR) are trading lower Wednesday afternoon, continuing a recent pullback from all-time highs. Here’s what investors need to know.
What To Know: The stock, a top performer this year with gains of over 100%, is now a battleground between bullish enthusiasm for its AI prowess and bearish warnings over its stretched valuation.
Adding a new dimension to its outlook, Commerce Secretary Howard Lutnick confirmed this week that the Trump administration is considering taking ownership stakes in major defense contractors, explicitly naming Palantir as a possibility. This follows the government’s recent $8.9 billion investment for a 9.9% stake in Intel, signaling a strategy to bolster key U.S. technology and defense assets.
Despite this potential government backing and a strong second-quarter earnings report in early August, pressure on the stock has mounted. Concerns are fueled by insider selling, including a recent $62.7 million sale by CEO Alex Karp as part of what the company calls automatic transactions to cover tax obligations.
Short-seller Citron Research has amplified bearish sentiment, initiating a short position and labeling the company “beyond overvalued” with a $40 fair value target. Analysts echo these concerns, pointing to a forward revenue multiple they describe as “too rich,” even as bulls like Wedbush’s Dan Ives call Palantir a “poster child of the AI revolution.”
Price Action: According to data from Benzinga Pro, PLTR shares are trading lower by 2.28% to $157.21 Wednesday morning. The stock has a 52-week high of $189.46 and a 52-week low of $29.31.
Read Also: Palantir Q2 Earnings: Revenue, EPS Beat Estimates, Company Raises Guidance Citing ';Astonishing Impact' Of AI Leverage
How To Buy PLTR Stock
By now you're likely curious about how to participate in the market for Palantir Technologies – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Palantir Technologies, which is trading at $157.91 as of publishing time, $100 would buy you 0.63 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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