Palantir Tumbles 1.82% on Record $9.74 Billion Volume as Bulls and Bears Clash Over AI Expansion and Valuation Risks

On August 14, 2025, Palantir Technologies (PLTR) closed with a 1.82% decline, trading with a daily volume of $9.74 billion—the seventh highest on the stock market. The drop occurred amid mixed signals from recent corporate developments and market sentiment.

Positive momentum emerged from Palantir’s expanded multi-year AI partnership with Japan-based SOMPO Holdings, which aims to accelerate growth in Asia and secure recurring revenue streams. The company also reported robust second-quarter results, including a 48% year-over-year revenue increase driven by 92.5% growth in U.S. commercial sales and 53% growth in government contracts. These figures prompted an upgrade to “Strong Buy” ratings from some analysts, citing sustained AI-driven expansion potential.

However, bearish pressures persisted. Short-seller Andrew Left and critics like Citron Research labeled PLTR “overvalued,” citing its elevated price-to-earnings ratio of ~616x and concerns over reliance on government contracts. Analysts highlighted the risk of budget cuts or contract consolidations disrupting Palantir’s revenue streams. Meanwhile, Goldman Sachs maintained a “Neutral” rating despite raising its price target to $141, reflecting cautious optimism.

The stock’s performance was further clouded by broader market dynamics. While Palantir remains one of the S&P 500’s top performers in 2025, its valuation multiples and activist short positions have fueled debates over whether its growth trajectory is sustainable. Institutional investors, including Oak Ridge Investments and Russell Investments Group, increased holdings, but others, such as Fjarde AP Fonden, reduced stakes, signaling diverging perspectives on risk-reward balance.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a compound annual growth rate of 6.98%, with a maximum drawdown of 15.46% recorded during the backtest period. Despite steady growth, the significant decline in mid-2023 underscores the necessity of risk management in volume-driven strategies.