Why is PLTR stock going down so dramativc

The stock price of Palantir (PLTR) has experienced a decrease of 5.82% on June 5, 2025. The decline in Palantir's stock price can be attributed to a combination of factors:

1. Government Surveillance Allegations: Palantir has been linked to a reported contract with the Trump administration to build a "spy machine" or database of Americans' personal data, which has raised ethical and privacy concerns. Such allegations can lead to a loss of investor confidence and negative market perception.
2. Mixed Outlook from Analysts: Analysts have predicted a mixed outlook for Palantir, with an average one-year price target suggesting a potential downside from the current stock price. This sentiment can contribute to a decline in investor confidence and stock price.
3. Overvaluation Concerns: GuruFocus estimates a significant overvaluation of Palantir's stock, with a GF Value indicating a 75.96% downside from the current price. Such concerns about overvaluation can lead to a sell-off as investors seek more value-oriented investments.
4. Recent Performance and Volatility: Palantir's stock has been volatile, with a significant surge on June 5, 2025, followed by a sharp decline. This recent performance can create uncertainty and cause investors to sell off their positions.

In conclusion, the decline in Palantir's stock price is likely a result of a combination of factors including government surveillance allegations, mixed outlook from analysts, overvaluation concerns, and recent performance and volatility.