Palantir faces investor exodus and German military rejection as narrative cracks

"In the week through 13 May, individual investors were net sellers of $82 million worth of Palantir shares, according to JPMorgan data cited by analyst Arun Jain. They also dumped $117 million of Microsoft stock. The rotation is not out of technology entirely, it is out of software and into semiconductors. The VanEck Semiconductor ETF and iShares Semiconductor ETF are up 60% and 75% year to date, respectively. The Roundhill Memory ETF, which trades under the ticker DRAM and launched on 2 April, has roughly doubled since inception and attracted more than $5 billion in assets, including $1.1 billion in a single day last week."

"Palantir's stock is down roughly 20% year to date. That decline has arrived despite first-quarter results that would have been the envy of any software company a year ago: revenue of $1.63 billion, up 85% year on year, with US revenue surging 104% and US commercial revenue climbing 133%. The company raised its full-year guidance to $7.65 billion, implying 71% annua"

"Germany's military formally excluded the company from its defence cloud procurement. The Bundeswehr is testing three European alternatives: Almato, Orcrist, and ChapsVision. Alex Karp has spent the past fortnight telling anyone who will listen that Palantir Technologies is indispensable. Retail investors and the German military have arrived at the opposite conclusion, and their timing is almost perfectly synchronised."

Retail investors sold $82 million of Palantir shares in the week through 13 May and also sold $117 million of Microsoft shares. The rotation moved from software into semiconductors, with semiconductor ETFs up sharply year to date and a memory-focused ETF nearly doubling since launch. Palantir’s stock is down about 20% year to date despite Q1 revenue of $1.63 billion, up 85% year over year. US revenue rose 104% and US commercial revenue increased 133%. Full-year guidance was raised to $7.65 billion. Germany’s military formally excluded Palantir from defence cloud procurement and is testing European alternatives including Almato, Orcrist, and ChapsVision.

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