Palantir Technologies, Inc. (NASDAQ:PLTR) steps into the spotlight with its fourth-quarter earnings report after Monday's closing bell, but it's bringing some baggage. 

PLTR stock is moving. See the chart and price action here. 

While the stock has nearly doubled over the last year, January was a rough month—shares fell 19% as investors grew nervous about the AI trade and Palantir's high price tag.

RBC's Warning

RBC Capital Markets analyst Rishi Jaluria maintained his skepticism last week with a Sell rating and $50 price target, representing a nearly 70% potential downside from current levels. 

Jaluria argued that Palantir stock is overdue for a reality check, according to TipRanks. 

The analyst's three main red flags:

Government Cooling: RBC's internal data suggests that the value of new government contracts is shrinking, even if global chaos keeps Palantir relevant in the long run.

Commercial Fatigue: Jaluria said there are whispers that the initial gold rush ...