Palantir (PLTR) Smashes Q3 Earnings—So Why Is the Stock Tanking?
Palantir just dropped a knockout Q3—revenue soaring, contracts stacking, guidance climbing. Yet the stock's bleeding like a stuck pig. What gives?
Wall Street's favorite paradox: A company executing flawlessly while shareholders get executed. The market's punishing PLTR for crimes it didn't commit—valuation concerns, macro jitters, and that classic tech-stock tradition of irrational price action.
Here's the kicker: Institutions love fundamentals until they don't. When a stock this volatile posts numbers this good, algo traders smell blood in the water. Perfect setup for a gamma squeeze or painful rug pull—take your pick.
Meanwhile, retail investors are left holding the bag again. Because nothing says 'efficient markets' like 10% swings on earnings beats. Just another day in the casino.
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For context, Palantir reported earnings per share (EPS) of $0.21, surpassing the consensus estimate of $0.17. Its Q3 revenue reached $1.18 billion, exceeding analysts’ expectations of $1.09 billion.
Investors Pull Back From PLTR
Following its earnings, PLTR stock fell as high investor expectations and a premium valuation left little room for disappointment. Coinciding with its earnings report, renowned investor and hedge fund manager Michael Burry disclosed a bearish bet against Palantir, resulting in a sharp sell-off in PLTR. In a quarterly filing, Burry’s Scion Asset Management revealed it holds put options on 5 million Palantir shares.
Meanwhile, Palantir’s stock was also hit amid a broader tech sell-off, as investors weighed macroeconomic news and high valuations in AI stocks. The decline underscores the tension between strong earnings and cautious market sentiment in the AI-driven growth sector.
What’s Next for Palantir?
Despite the recent pullback, PLTR shares are still up more than 130%, driven by strong demand for AI solutions and lucrative government contracts. The stock, however, remains about 15.5% below its all-time high of $207.18.
Looking ahead, many investors believe the company can turn its advanced AI technologies into practical solutions for government and enterprise clients, making the recent pullback a potential buying opportunity.
Wall Street Reactions
On Wall Street, analysts’ reactions to PLTR stock were mixed. While several raised their price targets, the majority maintained Hold ratings.
For instance, HSBC’s five-star analyst Stephen Bersey raised his price target on PLTR from $181 to $197 with a Hold rating. He highlighted that the company’s U.S. commercial segment is growing rapidly, projecting revenue to increase at a 59.3% annual rate from 2025 to 2029, reaching $9.3 billion by the end of that period.
Meanwhile, DA Davidson’s top-rated analyst Gil Luria raised his price target from $170 to $215. Luria called Palantir “the best story in all of software,” praising its strong U.S. demand for AI solutions, leadership in applied AI, and expanding customer base.
Is PLTR a Good Stock to Buy Now?
According to TipRanks consensus, PLTR stock has a Hold rating, based on three Buys, 11 Holds, and two Sells assigned in the last three months. The average Palantir share price target is $187.87, which implies a downside of over 7% from current levels.
