Palantir's stock is sliding and its reputation is souring, which is bad for the company and its investors but welcome news to its many critics.

• Palantir stock has lost about a quarter of its value this year as investors bet against it, seeing it as overvalued.
• New AI rivals like Anthropic and OpenAI are poaching its engineers and competing for its business.
• The company leans heavily on the US government, which has handed it $10 billion in defense contracts.
• Palantir has become toxic in politics and abroad, with Democrats returning its money and doors closing in London, Paris, and Zurich.
• Its mass surveillance work, ties to law enforcement and the CIA, and role in Gaza have fueled public backlash, made worse by CEO Alex Karp's inflammatory public comments.

Outlook: Palantir is bracing for possible congressional hearings if Democrats win the House, but real oversight is unlikely to follow.