There appeared to be no material news driving shares lower on Monday; rather, a recent run-up in price could be to blame. Ramping interest in AI at both the federal and commercial level has been a boon for growth, sending Palantir higher over the past few years.
The stock began rising sharply in 2024 and continued to climb. Shares have gained 68% this year and 487% over the past 12 months.
However, fundamentals may tamp down future growth. Barron’s previously reported on Palantir’s high valuation and three-year beta, which represents a stock’s volatility relative to the broader market.
A beta value greater than 1 indicates a stock is more volatile than the market itself. At the time of reporting in late March, Palantir had a three-year beta of 1.8. At last check, that figure had decreased marginally to 1.5, according to Dow Jones Market Data.