Palantir Stock (PLTR) Rejects at the 200-Day Moving Average

Palantir (PLTR) spent almost 3 years trading above its 200-day moving average in a phenomenal bull run. But now the stock is below it. The line that was once a bull market price floor has become a ceiling.

What the 200-day MA tells us about PLTR

Hedge fund manager Paul Tudor Jones said it best: “nothing good happens below the 200-day moving average”. The 200-day MA tracks the average daily closing prices of a stock over the past 200 trading days. It can help you gauge an investment’s overall trend. 

PLTR first crossed above the 200-day MA in May 2023. It then rallied about 2,750% to its all time high of $207 in November 2025. It stayed above the 200-day MA that entire time.

But in January this year, the price broke below it. And last week’s attempt to claw back above it failed. The stock bounced up toward the line and got rejected back down.

That’s not a good thing.

What about Palantir’s strong business model?

Palantir runs an AI platform business for governments and large enterprises. Its clients include the US military, US Navy, intelligence agencies, and big businesses in healthcare, energy, and manufacturing. They pay Palantir to make sense of their data, so they can act on it faster. 

Palantir’s revenue has grown every year for eight years straight – from $595 million in 2018 to $4.48 billion last year. That’s a compound annual growth rate (CAGR) of around 33%. It also ended 2025 with $7.2 billion in cash and no debt. 

Palantir’s “Rule of 40” score was 127% last quarter. The rule adds revenue growth percent to profit margin percent. Anything above 40% is “strong”.

But its chart isn’t strong. Not until it can base back above the 200-day moving average.

As usual, none of this is investment advice. To learn how to invest with moving averages, check out our Moving Averages Explained guide.