Liz Ann Sonders, Charles Schwab chief investment strategist, says a 50 point interest rate cut by the Federal Reserve at next month’s meeting is “off the table.” She speaks on “Bloomberg Open Interest.”

Sources: Bloomberg

NEW YORK MANHATTAN BUSINESS CLUB

Palantir (PLTR) stock closed down for the sixth consecutive trading session as part of an extended decline driven by several factors:

• Overvaluation Concerns: The sell-off followed criticism from high-profile short seller Andrew Left of Citron Research, who argued that Palantir’s valuation had become “detached from fundamentals” and that the stock should be worth closer to $40—far below its recent highs near $190. Citron’s report compared Palantir unfavorably to OpenAI in terms of price-to-sales multiples.
• Profit-Taking and Momentum: After a rapid run-up on strong earnings and guidance that pushed the stock to record levels, investors have begun to take profits. Technical indicators like bearish relative strength and increased trading volume also suggest heightened selling pressure.
• Macro & Sector Pressures: Palantir’s decline has been exacerbated by a broader tech sell-off amid worries about inflation and slowing economic growth. Earnings announcements from major retailers like Target and Home Depot have highlighted inflationary pressures, further spooking tech investors.
• AI Sector Skepticism: New data from MIT revealed that most businesses investing in AI see little or no returns so far, adding skepticism about Palantir’s continued rapid growth.
• Insider Selling & Government Spending Uncertainty: Palantir CEO Alex Karp’s plans to sell up to $1.2 billion in shares by September added unease. Additionally, potential cuts to the U.S. military budget under the Trump administration have raised questions, since over half of Palantir’s revenue depends on government contracts. Louie DiPalma, William Blair’s industrials analyst, highlighted this risk in a recent Market Domination segment, noting the uncertainty around future government spending and how mixed signals from Washington create volatility for Palantir’s outlook.

Louie DiPalma also pointed out that even after a 70% drop, Palantir would remain the most expensive software stock in terms of valuation—a sign of extreme market exuberance.

Overall, Palantir’s recent drop is the result of an unsustainable valuation, broader economic anxieties, insider sales, and doubts about AI sector profitability and future government business.

Video: Yahoo Finance

Market Domination Recap: August 20, 2025

Google’s Latest Product Announcements

On August 20, 2025, Google revealed a new lineup of tech products at its major event. The launch included four new Pixel phones, a smartwatch, and a suite of cutting-edge AI tools—all designed to integrate seamlessly and highlight Google’s continued push into hardware and artificial intelligence. Tech editor Dan Howley provided an in-depth breakdown of these products, focusing on how Google’s AI advancements are set to transform user experiences and compete with rivals in both the smartphone and wearable categories.

Palantir’s Six-Day Stock Slide

Palantir Technologies experienced a significant decline, marking its sixth straight day of losses. The stock fell by 1% on August 20, closing around $156—a drop of about 16% from its record close just a week earlier. During the day, shares dipped as low as $142 (down 24% from recent highs). The six-day losing streak erased $73billion in market value, handing short sellers a rare win after a year of persistent bullishness in the stock.

Key Reasons Behind the Decline:

• Short Seller Pressure: Citron Research’s Andrew Left published a report warning that Palantir’s valuation was “detached from fundamentals,” suggesting a fair value closer to $40 per share—far below current levels.
• Overvaluation Concerns: Palantir’s price-to-sales ratio was 114, compared to OpenAI’s 17, raising alarms about sustainability even after strong recent financials.
• Tech Sector Sell-off: Broader market anxieties over economic data and tech sector froth led many investors to trim stakes in high-gloss companies, especially those seen as richly valued like Palantir.
• Technical Weakness: The stock’s RSI dipped into bearish territory and heavy volume signaled strong selling by major players. Key support levels to watch are $148 and $125, with risk of further decline if these don’t hold.
• Mixed Analyst Sentiment: While firms like Wedbush remain optimistic, others caution that a slowdown in enterprise AI adoption and Palantir’s defense-heavy focus could limit growth. Some potential clients favor platforms from Microsoft and Databricks for better accessibility and flexibility.

How Investors Can Play Palantir:

• Monitor crucial support levels ($148, $125, $98) for possible entry points.
• Factor in ongoing risks tied to valuation and sector rotation.
• Watch for news on enterprise AI deal flow, as this may help stabilize or reverse the trend.

The Broader Market Picture

Josh Lipton broke down the latest market action, noting mixed performance with the Nasdaq sliding for a second straight day. While investor enthusiasm for AI and tech stocks remains strong, there is a growing emphasis on tangible value and fundamentals as opposed to just hype around AI integration. Next week’s earnings—including Nvidia, a bellwether for the AI sector—are expected to be critical for determining the near-term direction of tech stocks.

The tech sector’s volatility is a reminder to investors to stay alert: fundamentals, competitive positioning, and macro events can quickly shift sentiment even for market leaders like Palantir and Google.

Yahoo Finance