Palantir Cuts Revenue Guidance, Shares Plunge in After-Hours Trading

Palo Alto, CA – Palantir Technologies raised its full-year outlook but disappointed investors, resulting in a sharp decline in shares during extended trading on Monday.

The analytics software provider reported first-quarter revenue of $884 million, which marked a 39% increase year-over-year and surpassed analyst expectations. Adjusted earnings per share were 13 cents, up from 8 cents a year earlier and meeting Wall Street’s estimates.

Investors may have anticipated more impressive results; Palantir had previously delivered strong earnings that had prompted excitement about its performance. Prior to the earnings report, Palantir’s stock had surged 64% since the beginning of the year, fueled by optimism regarding enterprise AI deployments and federal initiatives aimed at improving government efficiency.

However, following the earnings announcement, shares dropped over 9% to $112.32 in after-hours trading. Analysts observed that despite previous record highs for the stock, it encountered selling pressure as it approached the overbought territory.

Stock analysts have noted critical price levels to watch. The $97 mark could attract buying interest if the stock consolidates after the recent drop. A close below this threshold could lead to further declines toward $83 or even $66, particularly if the company fails to improve margins and revenue moving forward.

During potential upswings, investors are advised to keep an eye on the significant overhead area around $125, where the stock had previously seen notable resistance.

As Palantir navigates through this period of volatility, analysts continue to monitor its trajectory amid ongoing developments in the AI sector.