Palantir (PLTR) stock dropped over 7% after a U.S. Army memo cited security concerns in a battle communications prototype. Despite this, shares are up 130% since the start of the year. Commercial revenue grew 93% year-over-year, with the Artificial Intelligence Platform (AIP) driving customer base expansion and $5-million-plus deals.

Options data indicates bearish sentiment due to the stock’s high valuation. Expected trading range for contracts expiring Jan. 16, 2026, is $142 to $219. Short-term range is $172.50 to $188.31, with traders expecting a modest pullback or consolidation. Wall Street firms predict potential downside of 12% from current levels.

While Palantir’s fundamentals are strong, options data suggests bearish sentiment due to high valuation. Expected trading range for contracts expiring Jan. 16, 2026, is $142 to $219. Short-term range is $172.50 to $188.31, with traders expecting a modest pullback or consolidation. Wall Street firms predict potential downside of 12% from current levels.

Read more at Yahoo Finance: Palantir Stock Fell on an Army Warning. Here Is Where Options Data Tells Us PLTR Could Be Headed Next.