Palantir stock drops over 7% after earnings as new contract growth slows
Palantir is facing a sharp post-earnings selloff. Strong financial results were not enough to reassure investors, who focused instead on signs that growth in new contract activity is slowing.
163.97
187.50
Palantir reported a 96% increase in revenue to $2.31 billion, beating the analyst consensus of roughly $2.18 billion. Adjusted earnings came in at $0.44 per share versus expectations of $0.41. The company also raised its full-year revenue outlook to $8.53 billion.
Even those numbers failed to prevent a selloff. Palantir stock is down more than 7% in premarket trading on November 3.
The main source of concern was weaker growth in new contracts. Total contract value for U.S. commercial deals rose just 11%, compared with 153% in the previous quarter. Overall new contract value increased only 6%.
Post-earnings gap puts the 200-day SMA in focus
Palantir stock failed to hold the previously identified $200 support level and fell toward the $192.50 target, reaching $184.45. The price then attempted to recover above $200, but selling across the technology sector interrupted the rebound and pushed the stock down to $178.13.
In premarket trading on November 3, the shares are down more than 7%. Trading against the direction of such a large gap carries considerable risk. The base case therefore remains a continuation of the decline toward the 200-day SMA near $153.70.
The nearest resistance is $170. A break and sustained move above that level could open the door to a recovery. That scenario, however, should only be considered after today’s daily candle closes and the stock manages to hold above $170 for several sessions.
AI valuations face a tougher test after earnings
Palantir’s post-earnings reaction shows how demanding the market has become toward AI-related companies. Investors are paying closer attention not only to current revenue growth, but also to whether businesses can maintain high growth rates in the quarters ahead.
PLTR volatility may remain elevated over the next several sessions. Sharp intraday rebounds are possible after such a steep decline, but short-term traders may want to avoid rushing into positions against the prevailing move and wait for clearer signs of price stabilization.
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
