Palantir

Palantir’s stock fell despite strong earnings, prompting CEO Alex Karp to defend the company against short sellers like Michael Burry, accusing them of market manipulation. While the stock is up significantly this year, its high valuation (220x forward earnings) raises concerns. Short interest is low, but analysts like Citron Research suggest the stock is overvalued. Karp maintains confidence, highlighting Palantir’s growth and potential in AI, stating doubters can “exit.” His outspoken defense is not new, previously telling those unhappy with the stock price to simply sell.

Jim Cramer of CNBC argues that Wall Street’s focus on the valuations of select high-growth tech stocks, especially in AI, obscures broader market opportunities. He cites Palantir’s recent decline despite strong earnings as an example of investors overly targeting speculative stocks due to market expensiveness concerns. Cramer suggests overlooking the potential of other stocks with reasonable valuations is a mistake, and urges investors to examine individual company fundamentals and growth prospects instead of dismissing entire sectors. He believes Palantir’s situation might just be a need for the stock to “cool off.”

Palantir (PLTR) shares fell 8% despite strong Q3 results, fueled by valuation concerns, Michael Burry’s short position, and anxieties about an AI bubble. CEO Alex Karp criticized short sellers. While Palantir exceeded expectations and raised guidance, analysts noted the high expectations and forward P/E ratio of 254. Some suggest other AI-focused firms like Microsoft offer better risk-reward. Growth driven primarily by U.S. enterprise demand raises questions about long-term sustainability.

This report highlights key market-moving news. Palantir exceeded expectations, driven by AI demand, but saw a stock pullback despite strong results. Yum Brands considers selling Pizza Hut after sales decline. Kimberly-Clark plans to acquire Kenvue for $48.7B, sparking mixed market reactions. The Trump administration will partially fund SNAP benefits amidst a government shutdown. Starbucks partners with Boyu Capital in China to revitalize sales. Stellantis invests $13B in US operations.

Palantir CEO Alex Karp criticized Michael Burry for shorting Palantir and Nvidia, calling it “bats— crazy” to bet against AI leaders. Burry’s Scion Asset Management held significant put options against both companies. The news led to a stock dip for Palantir despite strong earnings. Karp believes Burry is wrong about the future of AI and Palantir’s role in it. Karp suggests Burry’s bearish sentiment is ill-informed, citing Palantir’s fundamental strength and growth in AI. The clash highlights ongoing debate about AI-related stock valuations.

Palantir CEO Alex Karp addressed critics after strong Q3 earnings, highlighting the company’s commitment to national and allied interests. Palantir’s stock has surged, but dipped slightly after hours. Karp defended Palantir’s work with government agencies and its pro-Israel stance, stating the company is on the “front line” against adversaries. He also made controversial statements regarding the fentanyl crisis and addressed criticism regarding Palantir’s work with ICE and the Israeli military, reaffirming the company’s values.

Palantir (PLTR) reported strong quarterly results, exceeding expectations with $1.18 billion in revenue and adjusted EPS of 21 cents. The company’s AI Platform (AIP) is driving growth, reflected in a 63% revenue surge and a more than tripled net income. Q4 revenue guidance is optimistic at $1.33 billion. U.S. government and commercial sectors saw substantial growth. Palantir raised full-year revenue and free cash flow forecasts. Fueled by retail investor enthusiasm, shares have surged. CEO Karp acknowledges AI market risks but asserts Palantir’s strength.

Palantir’s head of global communications, Lisa Gordon, expressed “concerns” over the company’s perceived shift towards the Trump administration, potentially causing internal tension. This shift, driven by CEO Alex Karp’s evolving political leanings and unwavering support of Israel, could impact internal culture and external relationships. Palantir, increasingly reliant on government contracts and defense work, faces ethical scrutiny over its work with agencies like ICE. Gordon acknowledged potential employee departures due to differing political views. The company must reconcile its evolving political stance to maintain employee trust and technological prowess.

Palantir’s stock has surged over 1700% since its 2020 direct listing, transforming it into a tech powerhouse with a market cap exceeding $432 billion. Fueled by government contracts and its AI platform (AIP), revenue and customer base have grown dramatically. Despite ethical concerns and high valuation multiples that have drawn criticism, CEO Alex Karp remains optimistic, projecting Palantir to be a pivotal software company. AIP drives commercial expansion, attracting clients like Wendy’s and American Airlines, while its AI capabilities are increasingly adopted by the government.

Salesforce CEO Marc Benioff expressed admiration for Palantir’s growth and high revenue multiple, acknowledging its premium pricing strategy. He hinted at a possible re-evaluation of Salesforce’s pricing models. Competition between the two companies extends to government contracts. Palantir focuses on value creation, justifying its higher price points with customized data solutions, while Salesforce emphasizes competitive pricing. Palantir’s market capitalization is now at $406 billion, surpassing Salesforce’s $231 billion, despite Salesforce reporting significantly higher revenue. Salesforce shares are down 27% this year.