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Palantir shares lost another 10% this morning: explore why

By:
on Nov 7, 2022
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  • Palantir reports slightly better-than-expected results for its fiscal Q3.
  • The data analytics company also raised its full-year earnings guidance.
  • Palantir shares still slipped more than 10% on Monday morning.

Palantir Technologies Inc (NYSE: PLTR) reported a strong third-quarter and raised its earnings guidance for the full year on Monday. Shares are still down more than 10%.

Why are Palantir shares down on Monday?

The data analytics company now forecasts up to $386 million in adjusted income from operations this year.

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But investors are focusing more on its outlook for the fiscal fourth quarter. It’s calling for revenue to fall between $503 million and $505 million this quarter – a bit shy of $507 million that experts had forecast.

Palantir Technologies Inc expects “currency” to be a $5.0 million headwind in Q4. Still, CEO Alex Karp was bullish in the letter to shareholders:

Sustained increase in interest and orders for our software products comes not in spite but because of the current moment of austerity and tightening credit conditions. Metaverse and other idiosyncratic pursuits of the technocratic elite may be luxury goods. But foundational data platforms are not.

Today’s sell-off might be an opportunity to buy Palantir shares considering the Wall Street expects it to be a $20 stock in the best-case scenario.

Palantir shares down despite strong Q3 results

  • Lost $123.9 million versus the year-ago $102.1 million
  • Per-share loss slightly expanded to 6 cents from 5 cents
  • On an adjusted basis, per-share earnings came in at a cent
  • Revenue went up 22% year-over-year to $477.9 million
  • Consensus was 2 cents a share on $474.7 million in revenue

U.S. commercial and government revenues were up 53% and 23%, respectively, as per the earnings press release. Palantir shares are now down more than 60% for the year as fears of a recession and the consequent slowdown in IT spending continue to weigh on the tech stocks.