Equity markets are jittery this morning, with US futures pointing lower as Palantir steals the spotlight.
By 10:00 GMT, the Nasdaq was down 1.5%, the S&P 500 off 1.2%, and the Dow Jones down 0.9%, all feeling the ripple from the data analytics firm’s pre-market dip.
Palantir posted another blockbuster quarter, yet the stock still slipped. Revenue rose 63% year-on-year to $1.18 bn (£901 m), while net income soared to $476 m, or 18 cents per share, up from $143.5 m, or 6 cents, last year. On paper, that’s a win, but investors are uneasy with a valuation hovering around 255 times forward earnings.
Dan Coatsworth, head of markets at AJ Bell, explained why results weren’t enough to keep the shares aloft. “Palantir’s 2025 run has been extraordinary, so even strong numbers can feel underwhelming. The company’s ties to AI growth and government work have created huge expectations that aren’t easy to satisfy.”
Adding to the tension, Michael Burry, the hedge fund manager famous from The Big Short, has taken a short position on the stock. His wager has drawn attention, with traders questioning whether Palantir’s meteoric rise might finally be losing steam.
