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Palantir Stock Falls More Than 12 Percent Despite Strong Earnings, Guidance

Valuation concerns triggered an adverse reaction to the company’s stock on Wall Street.
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Palantir Stock Falls More Than 12 Percent Despite Strong Earnings, Guidance
The Palantir Technologies logo is displayed at the company’s booth during the Consumer Electronics Show in Las Vegas, Nev., on Jan. 5, 2023. Patrick T. Fallon/AFP via Getty Images
Panos Mourdoukoutas
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Palantir Technologies Inc. shares lost more than 12 percent in the May 6 trading session despite strong earnings and crushing guidance a day earlier, on concerns that the company’s market valuation is running ahead of its growth potential.

On May 5, the Denver-based builder of software platforms for the intelligence community reported a 39 percent revenue jump in the first quarter from a year earlier and a 7 percent increase from the previous quarter to $884 million.
Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”