Thanks to the support of retail investors, Palantir Technologies bucked the skepticism of many Wall Street analysts over its lofty valuation in 2024 and early this year. With a two-week losing streak, though, Palantir stock no longer seems immune to Wall Street ratings.

On Friday, Palantir stock closed up 0,2% at $84.92. As of the market close on Friday, PLTR stock sank another 16.2% last week. Shares lost 15% in the week ended Feb. 21.

Palantir stock hit its all-time intraday high of $125.41 on Feb. 19 and closed at $112.06 that day.

Palantir on Feb. 27 tumbled below its 50-day moving average, a key support level. Among analysts polled by FactSet, four currently rate Palantir stock a buy, 12 give it a hold rating, with four sell ratings.

Further, Palantir has given up most gains since popping on fourth quarter earnings. Still, Palantir stock has advanced 10% in 2025.

Institutional ownership has weakened. Also, Palantir has dropped off the IBD 50 roster of growth stocks.

Palantir Stock: AI Trades Cool Off

Palantir's 2024 surge owed much to investor interest in artificial intelligence stocks.

Meanwhile, Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market.

Palantir's stock retreat ostensibly is tied to possible Department of Defense budget cuts. One concern is Palantir's exposure to U.S. Army contracts. Meanwhile, Palantir Chief Executive Alex Karp plans more share sales.

The software company isn't the only AI stock to cool off recently. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) are off about 7% and 14%, respectively, in 2025. Arista Networks (ANET) has shed nearly 16%. Salesforce (CRM) is down about 11%.