Palantir must surprise with strong earnings to boost stock amid recent 20% drop and high valuation.

Palantir Technologies has seen its stock drop nearly 20% since the start of the year, despite still trading at a high forward earnings multiple of 105x. The company needs to deliver a strong earnings report, particularly showing momentum in commercial backlog and company-wide remaining performance obligations (RPO), to support a stock rerating. The author remains bullish on Palantir, focusing on GAAP operating margin as a key metric for Q1, but acknowledges patience is tested as other market sectors rally. Insider buying at lower prices after recent sell-offs is seen as a positive sign for the stock's potential recovery.