So, Palantir Technologies Inc (PLTR) is having a rough week. The stock is sliding again in Tuesday's premarket, and it's not just one thing. It's more like a committee of problems all showing up to the same meeting: some new competition, a big bill for the CEO's travel, and a lawsuit that won't go away.

The latest wave of selling actually started late last week. The trigger? A company called Anthropic rolled out a new AI tool called Claude Code Security. Think of it as a super-smart code reviewer that can scan entire software projects, find hidden bugs, and even suggest fixes. This announcement sent a chill through the whole cybersecurity and AI software sector on Friday, and Palantir, sitting right in that intersection, got caught in the downdraft. It's a reminder that in the fast-moving world of AI, a competitor's product launch can be a headwind for everyone else.

That's Quite a Travel Budget

Then there's the corporate governance stuff. Recent regulatory filings showed that Palantir reimbursed its CEO, Alex Karp, a cool $17.2 million for his use of private jets in 2025. For context, that's more than double what it was the year before. When you're a company under the microscope for profitability and spending, that kind of line item tends to raise eyebrows.

It certainly caught the eye of Michael Burry, the investor famous for predicting the 2008 housing crash. He publicly called out the expense, which amplified questions about the board's oversight and the company's overall cost discipline. It's the kind of story that can make generalist investors nervous, even if they believe in the long-term tech story.

The Legal Cloud Hanging Around

Adding to the uncertainty is an ongoing legal battle. Palantir is suing an AI startup called Percepta, accusing it of misusing confidential information. The problem for Palantir is that a judge recently decided not to issue an injunction that would have blocked Percepta's operations while the case plays out. That means Percepta gets to keep doing business for now, which keeps a layer of execution risk over Palantir. Lawsuits are distracting, expensive, and their outcomes are hard to predict.

What the Charts Are Saying

Let's look at the technical picture, because the numbers tell a clear story of a stock struggling to gain momentum. Right now, Palantir is trading about 9.8% below its 20-day simple moving average and a hefty 25.4% below its 100-day average. In trader talk, that means any attempt to rebound is happening underneath key trend lines that often act like a ceiling for the price.

Zooming out, the stock is still up 44% over the past year—a great run. But the current price is sitting much closer to its 52-week low of $66.12 than its eye-popping high of $207.52. Traders are watching two key levels: resistance around $145 (a price it needs to break above to signal strength) and support around $126 (a level it needs to hold to prevent further declines).

The Fundamental Backdrop: Growth vs. Price

The next big date on the calendar is the earnings report expected on May 4. The expectations are sky-high, which is typical for Palantir. Analysts are forecasting earnings per share of 26 cents, which would double last year's 13 cents. Revenue is expected to leap to $1.54 billion from $883.86 million a year ago.

That's spectacular growth. The catch? You're paying a spectacular price for it. The stock trades at a price-to-earnings (P/E) ratio of about 207.3. That's a premium valuation that assumes everything will go perfectly. It doesn't leave much room for surprises, like competitive threats or cost overruns.

The analyst community is still largely in the bull camp, with a consensus Buy rating and an average price target of $162.96. But recent moves show a range of opinions:

• Mizuho upgraded the stock to Outperform with a $195 target on February 18.
• DA Davidson took a more cautious Neutral stance and lowered its target to $180 on February 3.
• Citigroup stayed bullish with a Buy rating and hiked its target all the way to $260, also on February 3.

So, you have analysts who see a path to nearly $260 and others who think the ride might be bumpier around $180. That's a wide spread, reflecting the high-stakes, high-uncertainty nature of the stock.

Putting it all together, Palantir finds itself in a squeeze. Its core growth story is still intact, but it's facing new competitive noise, nagging questions about how it spends money, and a legal dispute. When you combine that with a stock price that already bakes in a lot of success, it's not surprising that some investors are hitting the sell button. As of Tuesday's premarket, Palantir shares were down another 1.91% at $128.10, adding to Monday's 3.43% drop.