Palantir Just Delivered a Monster Quarter, but the Stock Is Plummeting. The Reason Why Is Obvious.
Despite one of its best earnings reports to date, Palantir stock just fell off a cliff.
Until recently, the capital markets have exhibited abnormal levels of strength over the last few years. Perhaps the biggest influence fueling stocks during this period is the bullish narrative surrounding artificial intelligence (AI).
Since May 5, 2022, the Invesco QQQ ETF -- which tracks the Nasdaq-100 -- has generated a total return of 58% as of this writing (May 6). This handily outperforms the 43% total return seen in the S&P 500 index. While these results might suggest that technology stocks in general have been strong performers, there are some notable outliers that have contributed to the AI trade.
Enter data mining darling Palantir Technologies (NASDAQ: PLTR). Over the last three years, Palantir stock has surged by 953% -- emerging as one of the top performers across the S&P 500 and Nasdaq-100 indexes.
