Palantir Technologies Inc. (PLTR) shares took another hit Thursday, sliding to a fresh 52-week low of $106.93. The stock is now down 36% year-to-date, and the selling doesn't seem to be letting up. At publication time, shares were off 5.24% at $107.55.

The decline comes even as the company delivered what looks like a stellar quarter. In the first quarter of 2026, Palantir reported revenue of $1.63 billion — an 85% jump from the same period last year. But investors aren't rewarding that growth. Instead, they're focusing on the stock's valuation, which still carries a trailing price-to-earnings ratio above 121 times. That's a tough multiple to defend in a market that's suddenly skeptical about high-priced AI stocks.

The broader tech selloff this week, triggered by double-digit drops in South Korean memory-chip makers, has only added to the pressure. When the market gets nervous, richly valued names like Palantir tend to get hit first.

Anthropic Is Eating Palantir's Lunch

If valuation compression were the only problem, Palantir might have an easier time bouncing back. But there's a competitive threat that's getting harder to ignore: Anthropic.

Back in April, prominent short-seller Michael Burry posted on X that "Anthropic is eating $PLTR Palantir's lunch." He cited data from Ramp's March AI Index, which shows Anthropic winning about 70% of first-time, head-to-head enterprise deals against OpenAI. Burry, who holds long-dated 2027 put options on Palantir, argues that Anthropic's rapid scaling is outpacing Palantir's traditional software deployment model.

Anthropic's shift to usage-based, pay-as-you-go pricing — first reported by The Information in April — is changing how companies buy AI tools. Instead of committing to long, expensive integration projects with Palantir, businesses can plug into Anthropic's APIs and start using them almost immediately. That flexibility is a big deal for enterprise customers who want to move fast.

Palantir CEO Alex Karp pushed back on that narrative at a recent customer event, arguing that relying too heavily on large language models creates cost control problems. But the market seems to be siding with Burry for now.

Strong Execution, But the Market Doesn't Care

It's not like Palantir is struggling operationally. On May 4, management raised its full-year 2026 revenue guidance to between $7.65 billion and $7.66 billion, up from previous estimates. That's a clear sign that the business is humming.

But the stock's price action tells a different story. On Tuesday, Burry pointed out that Palantir's trading volume "fell into the top and still has not recovered as it falls," suggesting the downtrend has more room to run. The market is re-rating software multiples across the board, and Palantir is caught in the downdraft.

Technical Analysis: Deeply Oversold

From a technical perspective, Palantir looks stretched. The stock is trading 18.9% below its 20-day simple moving average (SMA), 20.9% below its 50-day SMA, 22.8% below its 100-day SMA, and a whopping 31.8% below its 200-day SMA. The 20-day SMA is below the 50-day, and the 50-day has crossed below the 200-day — a classic death cross pattern.

Momentum indicators are flashing oversold. The relative strength index (RSI) stands at 28.12, well below the 30 threshold that typically signals a stock is oversold. That doesn't guarantee a bounce, but it does suggest the selling might be getting exhausted.

Here are the key levels to watch:

• Key Resistance: $112.25 — the former 52-week low that could now act as overhead supply.
• Key Support: $108.13 — the current price area where buyers might try to stabilize the tape.

With the stock trading at a new low and sentiment deeply negative, Palantir is in a tough spot. The company's fundamentals are strong, but in this market, that might not be enough.