Palantir Technologies Inc. (NASDAQ: PLTR) was one of the best-performing stocks in 2024, posting a gain of over 300%. However, it’s been a different story in 2025. As of January 14, 2025, PLTR stock is down 14% for the year.

PLTR has had a rough start to 2025, dropping over 12% year-to-date, a period it has faced the threat of retesting lower support levels.

Both Palantir and SoundHound AI boast strong sales and healthy financials that have contributed to their triple-digit percentage share price gains over the past year. Palantir's revenue grew by 30% year over year in the third quarter,

Palantir stock may face more downside in 2025 amid multiple compression risks, Jefferies analysts said Monday. The company’s shares have declined by 15% year-to-date (YTD), yet the stock still trades at 46 times enterprise value

On December 6, Sanjit Singh, a Morgan Stanley (NYSE: MS) enterprise software equity analyst, gave Palantir stock an ‘Underweight’ rating, with a $60 price target. If met, his forecast would equate to a 24.78% downside from the current price of a Palantir share.