Catenaa, Wednesday, November 05, 2025- Palantir, which rose the most of any S&P 500 company last year and has extended an epic run, fell by 10% in two days after posting an 80% increase in revenue.
As CEO, Alex Karp put it, “These are arguably the best results that any software company has ever delivered.” The stock market had other ideas.
Despite putting up impressive figures and beating estimates, analysts couldn’t agree on a single line-item explanation for the investor retreat. But that in itself can be revealing.
At a stock price so high, there doesn’t need to be a new reason for people to exhibit caution. Maybe they want the money.
And given Palantir’s meme-adjacent status, the slightest shifts in sentiment can make all the difference.
That’s evident too in how Karp and Palantir’s boosters have pushed back against the perception that the company is overvalued.
Palantir shares are up more than 170% for the year and trade at a forward 12-month price-to-earnings ratio of 230, far above the P/E ratio of 35 for the “Magnificent Seven” stocks, according to Bloomberg data.
After boasting about Palantir’s exemplary performance, Karp said, “And that’s not hyperbolic, despite what your analyst friends may want you to believe because they’ve been wrong at every price, they’re wrong at every single round.”
On the one hand, sure. On the other hand, you could also let the ball do the talking.
The defense tech firm reported revenue of $1.18 billion for the three months through September 30, a 63% increase from the previous year and above the $1.09 billion expected by Wall Street analysts tracked by Bloomberg.
Palantir said it foresees revenue of just over $1.3 billion for the fourth quarter, ahead of the $1.2 billion projected.
The defense tech firm expects adjusted operating income of $695 million to $699 million for the period, above the roughly $575 million expected.
