"Last night, defense technology company Palantir ( Nasdaq: PLTR) beat analyst forecasts for Q3 earnings with a $0.21 per share (adjusted) profit on sales of $1.2 billion (nearly $100 million more than forecast). The company boasted of 61% year over year sales growth (77% growth in the U.S., and 121% growth in U.S. non-government commercial sales). And Palantir raised its guidance for the Q4 currently underway, saying sales will exceed $1.3 billion, beating forecasts for $1.2 billion in revenue."
"Fantastic numbers, but apparently not fantastic enough to justify the 700x P/E that Palantir stock was fetching heading into earnings. Investors are selling off Palantir stock by more than 8% this morning, and seeing as Palantir is a big component of the S&P 500, that selloff is pulling the whole Vanguard S&P 500 ETF lower as well. Adding to investor misery, Goldman Sachs CEO David Solomon warned last night of a "likely ... 10 to 20% drawdown in equity markets sometime in the next 12 to 24 months.""
Vanguard S&P 500 ETF (VOO) closed near its recent all-time high but opened down about 1% in premarket trading. Palantir reported Q3 adjusted EPS of $0.21 on $1.2 billion in sales, with 61% year-over-year revenue growth (77% U.S., 121% U.S. non-government commercial) and raised Q4 guidance to above $1.3 billion. Full-year revenue guidance is roughly $4.4 billion with adjusted income from operations exceeding $2.1 billion and expected free cash flow of $1.9–$2.1 billion. Despite strong results, a roughly 700x P/E spurred an over 8% Palantir selloff that dragged VOO lower. Goldman Sachs CEO David Solomon warned of a likely 10–20% equity drawdown within 12–24 months.
Read at 24/7 Wall St.
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