Palantir Technologies Inc. (NASDAQ: PLTR) was one of the best-performing stocks in 2024, posting a gain of over 300%. However, it’s been a different story in 2025. As of January 14, 2025, PLTR stock is down 14% for the year.

Both Palantir and SoundHound AI boast strong sales and healthy financials that have contributed to their triple-digit percentage share price gains over the past year. Palantir's revenue grew by 30% year over year in the third quarter,

With some of the biggest AI players going all-in on this technology, it might make existing AI powerhouses, like Palantir (NASDAQ: PLTR), a bit nervous. Palantir emerged as one of the best pure-play AI investments in 2024.

Palantir stock may face more downside in 2025 amid multiple compression risks, Jefferies analysts said Monday. The company’s shares have declined by 15% year-to-date (YTD), yet the stock still trades at 46 times enterprise value