Why Palantir Stock Plunged 34% in the First Half of 2026 and Why the Worst Might Be Over

Yahoo Finance ·

Shares of Palantir Technologies ( PLTR 1.57% ) got pummeled during the first six months of 2026, with shares plunging 34%, according to data provided by S&P Global Market Intelligence . That's a far cry from the 10% gains of the S&P 500 . Artificial intelligence (AI) stocks have been taking a breather over the past year as investors have grown more discriminating, casting a wary eye on stocks with frothy valuations and looking for the "next big thing." However, Palantir's stellar results and its lower stock price have combined to bring its valuation back to Earth, making the price more reasonable than it's been in some time. Since the start of this year, Palantir has delivered two quarterly financial reports, and each has been better than the last.

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