The Palantir share has dropped by its record high by 32%. The story says that this will happen next.

Palantir technologies (Please 0.18%))) The story when it reached almost 125 US dollars per share on February 18 and achieved an unprecedented evaluation of 61 -fold forward sales. The stock at this time had been up to 625% since January 2024 S&P 500 (^GSPC 1.59%))) During this time with a long lead.

Since then, the disappointing economic data and concerns about tariffs that are supposed to come into force at the beginning of March have rattled the Wall Street. Palantir fell 32% out of his record high in the past week because he has covered in the wider market, and the story says that the stock has to continue to decrease.

The story says

Palantir wrote history on February 18 when his forward price-to-sale (p/s) reached 61 several times. This evaluation rate is calculated by shared the current market capitalization by forecast sales in the next four quarters. In other words, the forward -P/S ratio quantifies the current share price depending on the expected future income. And 61 -times -forward sales are absurdly expensive.

It is not surprising that certain Wall Street analysts have given the alarm for months. For example, Gil Luria said at Da Davidson in November that Palantir acted his “unprecedented premium” against his software colleagues. And Brent Thill at Jefferies In February, CNBC announced that no other share had an assessment near Palantir. “We have never seen many times over,” he said.

My own research led to a similar conclusion. I have considered the forward -p/s ratio of more than 50 software shares in the past decade. As far as I know, Palantir is one of two companies that achieve an evaluation over the 60 -fold forward sales, and one of only four companies that achieve 50 times forward sales during this period:

• Soundhound ai traded in May 2022 with 63 times sales of forward sales. In January 2023 it went back by 96%.
• Snowflake Traded in November 2021 with 60 -forward sales. It decreased by 73% by September 2024.
• Serve robotics traded in December 2024 with the 59 -fold forward sale. In February 2025 it went back by 62%.

As already mentioned, every software stock that has exceeded 50 -fold forward sales in the past ten years finally fell at least 62%after reaching the top rating. And the average decline from peak value to trough was 77%. It is also noteworthy that all three stocks listed have still declined at least 55% from their record highs.

As already mentioned, Palantir has declined by 32% in the last seven trading days, but the statistics suggest that the share still has a long way to the decline. For example, if Palantir suffers a leader of 77% (the average of the three stocks listed above), this would pull its price below $ 29 per share.

The Palantir share could still be a worthwhile long-term investment

Investors should remember that the performance in the past is never a guarantee for future results. It is even more important, even if Palantir suffers a massive crash in the near future, it could still be a worthwhile long -term investment of its current price. In fact, Wedbush Analyst Dan Ives says that Palantir could be a trillion dollar company in the future.

This could happen: If Palantir's turnover increases by 30% annually in the next decade, it will report sales of around 40 billion US dollars in 2035. If the share were expensive at the end of this period to an expensive (but not absurd) evaluation of 25 times, Palantir would be a value of 1 Trailbillion of 1 Trailion worth 1 Trailion. This implies 400% upward trend compared to its current market value of $ 200 billion.

Admittedly, I made several aggressive assumptions in my hypothetical example. As a result, the most prudent procedure would be to avoid palantiry stocks until it is much cheaper. However, the current shareholders with a long time horizon could still see solid returns in the next decade if the company continues to be carried out.