Palantir shares lost another 10% this morning: explore why

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.

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:

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.