Palantir (PLTR) Plunges 10.46% in 4-Day Selloff Amid Regulatory Scrutiny and Earnings Jitters

The share price fell to its lowest level since August 2025 today, with an intraday decline of 6.50%. Palantir (PLTR) has now dropped 10.46% over four consecutive trading days, marking its sharpest selloff since the company’s 2020 IPO. The stock closed below $150, a key technical support level, and its 200-day moving average, intensifying bearish momentum.

Regulatory and reputational concerns have exacerbated the decline, driven by scrutiny over Palantir’s government contracts, particularly its work with U.S. Immigration and Customs Enforcement. Ethical questions surrounding its role in immigration enforcement have fueled negative media coverage and investor caution. Technically, the stock’s Relative Strength Index (RSI) of 31.7 signals oversold conditions, while a deeply negative MACD underscores deteriorating momentum. These factors, combined with profit-taking after a 100% annual rally in 2025, have deepened valuation fatigue among investors.

Analysts highlight the critical earnings report on February 2 as a potential inflection point. While the company’s government and commercial segments are projected to grow by 55.4% and 73.5%, respectively, any shortfall from $0.23 in EPS or $1.34 billion in revenue could trigger further selling. Despite optimistic price targets from firms like Piper Sandler and Morgan Stanley, the stock’s 543x EV/EBITDA multiple remains contentious. Broader market rotation out of high-growth tech names has also weighed on PLTR, leaving its near-term trajectory dependent on balancing regulatory risks, technical support levels, and earnings execution.