Palantir Crashes 30% From a 3-Year High of $125 — What History Says Happens Next
Palantir Technologies emerged as a dominant player in the booming enterprise AI market.
Shares of Palantir Technologies (NASDAQ: PLTR) are up 280% in the past year. Although an impressive run-up, it is still nearly 30% lower than its three-year high of $125 on February 18.
The company delivered an exceptionally strong fourth-quarter report on Feb. 3, showing that its revenues rose 36% year over year to $828 million, significantly exceeding the analysts' consensus estimate of $775 million. That top-line growth rate was particularly impressive considering that it was an acceleration from the 30% revenue growth rate reported in Q3, and came relative to a higher base.
While the stock initially reacted favorably to the earnings results, the excitement seems to be dying down. Investors are concerned about CEO Alex Karp disclosing plans to sell $1.2 billion worth of the company's shares. Palantir has also been negatively impacted by the news last week that Defense Secretary Pete Hegseth ordered the military to prepare plans for significant budget cuts over the next five years.
