Palantir Technologies stock fell more than 4% on May 13.
The decline follows a May 4 report where the company surpassed first-quarter earnings estimates. Palantir also raised its full-year guidance for 2026 during that announcement.
Investors are questioning the stock's high valuation relative to its growth. Market apprehension is rising due to competition from AI rivals Anthropic and OpenAI. These firms represent significant threats to Palantir's current market position.