Palantir Fell Today -- Is It Time to Buy the Stock?

Amid another day of big sell-offs for the broader market, Palantir (NASDAQ: PLTR) stock headed lower in Monday's trading. The software company's share price had been down as much as 4.8% in the daily session but closed out the day's trading down 3.2%. Meanwhile, the S&P 500 index fell 2.4%, and the Nasdaq Composite index fell 2.8%.

The stock market took another bearish turn today as investors reacted to President Trump calling Federal Reserve Chair Jerome Powell a "major loser" and stating that the U.S. central bank should pre-emptively reduce interest rates in order to strengthen economic growth. Following news on Friday that the Trump administration is researching the legality of firing Powell, the comments caused uneasiness among investors seeking assurances on the macroeconomic front. With today's pullback, Palantir stock is now down 27% from its high.

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Is Palantir stock a buy right now?

With the company valued at roughly 164 times this year's expected earnings and 56.5 times expected sales, Palantir has one of the most growth-dependent valuations of any major tech company on the market. But despite the outsized risk that typically comes with this kind of valuation profile, the business has characteristics that have made its stock impressively resilient amid this year's market volatility. Despite today's pullback, Palantir stock is up 20% in 2025.

Palantir has established itself as a frontrunner in artificial intelligence (AI) software, and its offerings are helping business customers generate actionable insights from their data, seize huge efficiency improvements, and automate initiatives across categories. The company is also seeing rapid sales growth among government customers for defense and other applications, and its sales base being concentrated among the U.S. and its allies is a positive amid geopolitical uncertainty.

Given the company's heavily forward looking valuation, there's no doubt that Palantir is a high-risk stock. But the tech specialist is also one of the strongest players in AI, and the long-term growth opportunities and foundations that are already in place suggest that the stock is a worthwhile buy for risk-tolerant investors.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.