Why is Palantir struggling?

Palantir Technologies has experienced significant stock volatility, with a 266.8% increase in 2024, driven by growth in commercial revenue and inclusion in the S&P 500. However, concerns about its high valuation have led to analyst downgrades, citing an "unsustainable valuation" and high revenue multiples compared to peers. Despite these concerns, Palantir's stock has continued to rise, indicating strong investor interest.