There's no clear reason for the drop, but that doesn't mean investors should blindly buy the stock.

Palantir Technologies ( PLTR 0.13% ) has been the best-performing stock in the S&P 500 this year. On Aug. 12, it touched an intraday high of $190 per share, 151% above where it started 2025.

Since then, however, shares have slipped significantly, dropping as much as 25% within a few days before recovering slightly. They still trade 18% below their all-time high.

Some investors may see the pullback as an opportunity to buy the high-flying AI stock before it takes its next leg up. Others may be wondering if there's still room for the stock to fall. Here is what's behind Palantir's sudden drop and whether it's worth buying at today's price.

Causes for concern at Palantir

There's n

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