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Navigating the Palantir Stock (PLTR) Dip: How to Buy the Dip Without the Risk
ByAinvest
Thursday, Aug 21, 2025 4:56 am ET1min read
Palantir Technologies (PLTR) stock has dropped 17% from its record high amid a broader market pullback and a report from short-seller firm Citron Research arguing the stock is overvalued. Investors seeking exposure to PLTR can consider the Global X Defense Tech ETF (SHLD) and iShares Expanded Tech-Software Sector ETF (IGV), both of which have a Moderate Buy consensus rating on TipRanks. SHLD has a 9.49% weighting of PLTR and a 45.62% return over the past six months, while IGV has a 10% weighting of PLTR and an 8.6% return over the past six months.
Palantir Technologies (PLTR) stock has seen a significant decline, dropping 17% from its record high over the past six consecutive trading sessions. This downward trend has been driven by a broader market pullback and a critical report from short-seller firm Citron Research, which argues that the stock is overvalued. The report suggests that Palantir's shares should be priced at $40, comparing it to the same price-to-revenue multiple in OpenAI's recent $500 billion valuation [1].Palantir's recent stock performance has been marked by a 20% decrease from its highs, pushing it further into correction territory. This is the longest such streak for the company since April 2024 [1]. Despite the recent dip, the company's forward price-to-earnings ratio of 193 times indicates that shares remain expensive compared to megacap peers.
Investors seeking exposure to Palantir without the risk of holding the stock directly can consider exchange-traded funds (ETFs). The Global X Defense Tech ETF (SHLD) and iShares Expanded Tech-Software Sector ETF (IGV) both have a Moderate Buy consensus rating on TipRanks. SHLD has a 9.49% weighting of PLTR and has returned 45.62% over the past six months. IGV has a 10% weighting of PLTR and has returned 8.6% over the same period [2].
These ETFs provide indirect exposure to Palantir, reducing risk compared to investing directly in the stock. They also offer diversification and liquidity, making them a viable option for investors. SHLD, with an expense ratio of 0.50%, invests in companies benefiting from defense technology, while IGV, with an expense ratio of 0.39%, focuses on leading U.S. software companies [2].
References:
[1] https://www.cnbc.com/2025/08/20/palantir-stock-selloff-ai.html
[2] https://www.tipranks.com/news/palantir-stock-pltr-tumbles-17-from-record-high-heres-how-to-buy-the-dip-without-the-risk
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