Palantir’s Strong Earnings Fail to Stem 12% Stock Decline Amid Valuation Concerns
Palantir Technologies reported robust third-quarter earnings, surpassing analyst expectations with $1.18 billion in revenue and $0.21 EPS. Despite 63% year-over-year growth and a 121% surge in U.S. commercial revenue, shares plummeted 12% post-earnings, reflecting market skepticism about its 110 forward price-to-sales ratio.
The sell-off intensified after Michael Burry's Scion Asset Management disclosed put options on 5 million shares. Analysts maintain Hold ratings, with an average price target suggesting 7% downside risk. Palantir's $2.76 billion total contract value—up 151%—highlights strong demand but fails to alleviate valuation concerns.