"Markets are still concerned that AI valuations are stretched. Leading recent AI losses, Palantir ( NASDAQ: PLTR) dropped, even after beating earnings estimates with solid guidance to boot. EPS of 21 cents beat estimates of 17 cents. Revenue of $1.18 billion was above estimates of $1.09 billion. While impressive, the market has become nervous about Palantir's valuation - especially as it trades at 200x forward earnings."
"Private payroll growth grew by 42,000 in October, following a decline of 29,000 in September. The latest number was also above expectations of 22,000. Trade, transportation, and utilities added 47,000 jobs. Education and health services added 26,000 jobs. Financial services added 11,000. Also, despite the AI boom, information services lost 17,000 jobs. Professional and business services lost 15,000 jobs. And manufacturing lost about 3,000 jobs for the month of October."
Most major indices are in the red this morning. Dow futures are up about 41 points, S&P 500 futures are up fractionally, and the NASDAQ is down about 10 points; the SPDR S&P 500 ETF ( SPY) is up half a point. Markets remain concerned that AI valuations are stretched, weighing on AI-related names. Palantir beat earnings and revenue yet trades around 200x forward earnings. AMD beat EPS and revenue but issued margin guidance that only met expectations. Private payrolls rose 42,000 in October with gains in trade, transportation and utilities, while information, professional services and manufacturing lost jobs. Non-farm payrolls are due November 7. Wedbush reiterated an outperform rating on Tesla with a $600 price target.
Read at 24/7 Wall St.
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