But there was probably more behind the selling, including that Palantir's shares had become way too pricey and were vulnerable to a selloff. At Tuesday's $124.52 close, the shares had risen 65% this year.

Could Palantir Technologies stock (NASDAQ: PLTR) drop to $60 in the near future from its current price above $120? Does this seem unlikely?

Palantir (NASDAQ:PLTR) shares have taken a sharp hit, sliding ~17% since yesterday morning after CEO Alex Karp unveiled plans to offload up to