Strategy (MSTR 7.15%) and Palantir Technologies (PLTR 2.53%) are both investing in the growing artificial intelligence (AI) market. Strategy -- until recently known as MicroStrategy -- has for some time been considered more of a Bitcoin (BTC 3.05%) hoarder than a software company, but it has been rolling out more generative AI tools for its business intelligence (BI) platform.
For much of the last two-and-a-half years, the bulls have been in firm control on Wall Street. Since the 2022 bear market bottomed out, we've witnessed the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all gallop to numerous record-closing highs.
Palantir Technologies (PLTR 2.53%) has been one of the hottest stocks on the market in the past couple of years, rising an incredible 1,000% as of this writing and beating the S&P 500 index's gains of just 45% during this period by a heavy margin.
Amidst a market-wide downturn, Palantir stock (NASDAQ: PLTR) crashed below $100 in late February.
Palantir Technologies (PLTR -3.98%) has been a darling for tech and artificial intelligence (AI) investors over the past year, as it has continually hit new heights despite concerns about its soaring valuation. Lately, however, it has been falling sharply in value, along with the market as a whole.
One of the hardest-hit stocks in the recent market sell-off has been Palantir Technologies (PLTR -3.98%). While it is still trading up about 264% over the past year, the stock is down more than 31% from its recent highs, as of this writing.
Palantir (PLTR -3.98%) stock has been on fire over the past year and shares have an extremely high valuation by most metrics. But management has noticed and is selling the stock rapidly.
Palantir (PLTR -3.98%) stock got hit with another round of sell-offs in Tuesday's trading. The company's share price closed out the day's trading down 4% and had been off as much as 6.2% earlier in the session.
Let's analyze the reasons behind the Palantir stocks' current downturn and why it is still a buy now.
Palantir has been one of the most successful and beloved investments for many growth investors over the last few years. And, today, it's no secret why many investors have loved it: its business is experiencing acceleration like we've rarely seen in the growth investing universe. Atop accelerating growth and expanding margins, the stock has been pushed to extraordinary valuation levels.
Palantir Technologies (PLTR -3.62%) fell further on Tuesday, slumping as much as 6.4% and continuing the downward trajectory that began last month. As of 11:35 a.m.
Last year, shares of air mobility company Archer Aviation (ACHR 5.13%) and enterprise software specialist Palantir Technologies (PLTR 1.29%) gained 59% and 340%, respectively -- handily outperforming the returns generated by the S&P 500 and Nasdaq Composite.