Palantir Technologies Inc. ($PLTR) has experienced a sharp decline in its stock price over the past week, entering correction territory with a drop exceeding 20% from its recent highs. The stock has fallen for six consecutive trading sessions, marking its longest losing streak since April 2024. This downturn has erased approximately $73 billion in market capitalization, pushing Palantir out of the top 20 U.S. companies by market value. The decline includes a nearly 16% plunge over two days, the worst since August 2022, and an 18% retreat from its all-time high set in mid-August. Analysts and market observers note that the stock moved from more than 10% above its 20-day moving average to over 10% below within five trading days. Citron Research has issued a bearish outlook, suggesting that Palantir's stock price could fall to $40. Despite the selloff, some commentators emphasize Palantir's strong company fundamentals, though they acknowledge the stock had become overextended. The recent losses have provided a rare advantage to short sellers who had bet against the stock earlier in the year.