Palantir and Big Tech: Reasons for the Decline

While large technology companies lead market gains, some high-valued stocks have begun to lose value. One of the primary examples of this situation is Palantir. The company is trading at a price that is about 250 times its 12-month forward earnings estimates.

Expert Lynch summarizes the situation by stating, "Palantir has lost 15% of its value in the last five days for a reason." On the other hand, Coreweave has lost 22% in the last five days; Alphabet has remained nearly stable. Alphabet has achieved tremendous free cash flow growth and exceeded earnings estimates by 26%. Even in the event of a slight slowdown in the AI super cycle, there are numerous revenue opportunities in the coming five years from non-AI platforms such as search, cloud computing, Waymo, and YouTube.