Stephen Guilfoyle, a 30-year Wall Street veteran who now runs Sarge986 LLC, a family trading operation, attributed Palantir’s recent decline to profit-taking by short-term traders. He noted that the “swing crowd” likely locked in gains as the stock tested a key moving average, accelerating the sell-off.

The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech.

Palantir's price-to-sales ratio of 114 is way above OpenAI's 17. Palantir's success in defense work could block access to growth as enterprise AI payoff remains elusive