Palantir shares fell 16% in November, marking its worst month since August 2023 as investors sold off AI stocks over valuation concerns.

The company began the month by beating Wall Street’s Q3 expectations and posting its second consecutive US$1 billion revenue quarter.

Analysts at Jefferies and Deutsche Bank called Palantir’s valuation “extreme” and “very difficult to wrap our heads around.”

Royal Bank of Canada (RBC) warned about its concentrated growth profile.

Despite new deals with PwC in the UK and FTAI, Palantir and other AI-related stocks continued to drop.

The stock ended the month trading at 233 times forward earnings, far above Nvidia and Alphabet.

🔗 Source: CNBC

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