Palantir Stock Is Falling Monday: What's Going On?

Palantir Technologies Inc PLTR shares are trading lower Monday amid increasing AI competition concerns from China’s DeepSeek.

What To Know: Broader markets are facing heavy selling pressure on Monday. The biggest declines can be seen in the tech-heavy Nasdaq after Chinese startup DeepSeek demonstrated high-performance AI computing at a low cost.

DeepSeek rolled out a free AI assistant that it says uses lower-cost chips and less data than other leading models, according to Reuters. DeepSeek’s AI Assistant app also overtook OpenAI’s ChatGPT as the top-rated free app in Apple’s App Store on Monday.

The leading AI chipmakers were under the most pressure Monday morning, but Palantir was also facing significant selling pressure, last down more than 5%.

Palantir shares rallied more than 300% in 2024, driven by the company's positioning in the AI space. The stock is up approximately 75% since the company last reported earnings. Palantir is due to report quarterly financial results again after the market close on Feb. 3. 

Analysts currently expect the company to report earnings of 11 cents per share and revenue of $775.91 million, according to estimates from Benzinga Pro.

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Last quarter, Palantir said revenue jumped 30% year-over-year on continued strength in the U.S. The company’s customer count grew 39% after closing 104 deals worth over $1 million during the period, driven by “unrelenting” AI demand. 

“The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand for the most advanced artificial intelligence technologies from our U.S. government and commercial customers," Palantir CEO Alex Karp said in a letter to shareholders last quarter.

The Financial Times reported last month that Palantir and defense technology company Anduril are communicating with multiple competitors about potentially forming a consortium to make joint bids on U.S. government contracts.

The report suggested that SpaceX and OpenAI were among the companies in talks with Palantir and Anduril. People with knowledge of the matter reportedly said the group was planning to announce itself publicly as soon as January.

PLTR Price Action: Palantir shares were down 5.32% at $74.84 at the time of publication Monday, according to Benzinga Pro.

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