U.S. Stock Market Night Session | Lattice Semiconductor fell more than 17% as Q3 performance missed expectations; Palantir rose nearly 14%, driven by AI business growth.

Market Watcher11-05
On November 4th, during the U.S. stock night session, major tech stocks showed mixed performance. Lattice Semiconductor fell sharply by 17.71%, while Palantir Technologies surged by 13.74%. DigitalOcean Holdings also saw a significant rise of 9.40%.

Lattice Semiconductor experienced a significant drop of 17.71% after reporting its Q3 financial results. The company posted a net income of USD 7.19 million with a basic EPS of USD 0.05. Despite an adjusted EPS of USD 0.24 in line with the IBES estimate, the Q3 revenue of USD 127.091 million slightly missed the IBES estimate of USD 127.1 million. The company also provided a Q4 revenue outlook of USD 112-122 million. Despite maintaining a 'Buy' rating from Rosenblatt with a price target of $85.00 per share, the market reacted negatively to the earnings report.

Palantir Technologies saw a substantial increase of 13.74%, driven by accelerating quarterly growth fueled by artificial intelligence. The company's stock has surged approximately 150% in 2024, reflecting strong investor confidence in its AI initiatives. CEO Alex Karp highlighted the value of AI beyond building large language models, with U.S. commercial revenue up 54% and U.S. government revenue growing by 40%. Palantir has raised its annual revenue forecast for the third time, now expecting 2024 revenue in the range of $2.805 billion to $2.809 billion, up from the prior expectation of $2.742 billion to $2.750 billion.

DigitalOcean Holdings also reported positive financial results for Q3 2024, with a revenue of $198 million, marking a 12% increase compared to the previous year. The company reported a net income of $33 million with a margin of 17% and an adjusted EBITDA of $87 million with a margin of 44%. DigitalOcean continued to innovate by releasing 42 new product features, focusing on meeting the needs of larger customers and aiming to democratize access to AI infrastructure.

Overall, the night session saw significant movements in tech stocks, with Lattice Semiconductor facing challenges despite a maintained 'Buy' rating, while Palantir and DigitalOcean showed strong growth driven by their AI and innovation strategies.
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