Palantir Shares Slide After Record Quarter as Valuation Jitters Overpower AI Surge
Investors questioned the company’s lofty valuation despite AI-fueled growth.
Overview
- Third-quarter revenue reached about $1.18 billion, up 63% year over year, with adjusted earnings of $0.21 per share that beat expectations.
- Palantir raised its 2025 revenue outlook to $4.4 billion, extending a multi-quarter run of topping forecasts.
- U.S. commercial revenue jumped 121% from a year earlier and now represents roughly 75% of total sales.
- Shares fell roughly 7% to 7.5% and led Nasdaq 100 decliners as analysts flagged a valuation near 253 times expected earnings and revived AI-bubble concerns.
- Executives highlighted momentum in the AIP platform and a partnership with Nvidia, while CEO Alex Karp alleged market manipulation and skeptics pointed to few Buy ratings and new short positions such as Michael Burry’s.