Palantir Stock Has Fallen More Than 35% From Its High. Is This the Pullback Long-Term AI Investors Have Been Waiting For?

Palantir's stock has declined over 35% from its 52-week high, despite the company achieving its fastest revenue growth rate as a public company with 85% year-over-year Q1 growth and raising 2026 guidance to 71% growth. However, the stock remains extremely overvalued with a P/E ratio exceeding 140 and trading at 40x forward revenue, suggesting the pullback may not be steep enough to make shares attractive for long-term investors.