Palantir Shares Post Biggest Daily Slide Since 2022 After Forecast Disappoints

Reuters05-08

NEW YORK, May 7 (Reuters) - Shares of Palantir Technologies fell 15.1% on Tuesday in their biggest daily percentage drop since May 2022, a day after the data analytics company gave a revenue forecast that disappointed.

The stock closed at $21.40, while on Wall Street, action was more subdued, with the S&P 500 ending slightly higher and the Nasdaq down a bit.

Late on Monday, the company raised its annual revenue forecast amid strong demand for its services that help businesses deploy artificial intelligence applications, but the forecast missed Wall Street's lofty expectations.

Still, several brokerages raised their price targets following the report, including D.A. Davidson, which raised its target to $24 from $19.

"While guidance for FY2024 was increased, it was lighter than expected," D.A. Davidson analysts wrote in their research note, adding that management had noted "they're seeing unavoidable headwinds in Europe."

But they wrote that overall the company results for the first quarter were "solid ... driven by further operating margin expansion and growth within U.S. Commercial revenue." D.A. Davidson is keeping its "neutral" rating on the stock.

Jefferies analysts wrote that investors may be focused on high multiples for the stock.

Including the session move, the stock is up 25% for the year so far.

The day's trading volume in Palantir was more than three times the 10-day moving average volume.

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Comments

  • Cedric77
    05-08
    Cedric77
    It probably is due to Market Sendiment. Investors expected better earning than the reported Strong Earning! So is Ecpectation vs Reality! Though PLTR beats earning expectations but did not meet the anticipation of Investors so they react negatively.  IMHO, is a buy with 15% discounted price on this PLTR. Go for it.
    • 港股知識匯
      Investors are not always rational, they often have high expectations.
  • jae1987
    05-08
    jae1987
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