From Yahoo Finance: 2025-04-27 15:00:00

The U.S. stock market is experiencing increased volatility due to the Trump administration’s tariff actions. The AI-driven market rally appears to have ended, raising concerns about potential crashes. Palantir Technologies, an AI stock, is considered particularly risky in this shaky market.

Palantir Technologies has seen significant stock growth but faces potential risks. The company’s insiders have been selling stock, with no insider purchases reported. The stock’s high valuation and potential for a 50% or more decline in a crash raise red flags for investors.

Despite its growth, Palantir’s insiders continue to sell stock, causing concern among investors. The company’s high valuation, trading at 86 times its revenue and 531 times earnings per share, signals potential unsustainability. Analysts predict a slower growth rate than what justifies the current stock price.

Insiders selling at generational valuations hint at potential risks in Palantir’s stock. A market crash or economic downturn could trigger a decline, as the company’s valuation is deemed excessive. Investors may want to reconsider buying at these levels to avoid potential losses.

The Motley Fool’s analyst team does not recommend Palantir Technologies as one of the top 10 stocks to buy now. The company’s stock valuation and insider selling are red flags for investors. Consider long-term growth potential and market trends before investing in Palantir Technologies.

Read more: There’s 1 Top AI Stock Insiders Keep Selling. Here’s Why Shares Could Plummet 50% in a Market Crash.