"Shares of the software company have tumbled roughly 29% from their November peak, reached right before Palantir last reported results, and are down more than 15% to start 2026, putting them among the 15 worst performers in the S&P 500 this year. While the selloff has cut into Palantir's valuation, shares still trade for about 142 times expected earnings, the third-highest multiple in the S&P 500. Despite its hefty price tag, Wall Street expects Palantir to report another quarter of solid growth."
"Palantir's earnings come amid mounting skepticism about Big Tech, with investors demanding to see returns on high spending on artificial intelligence infrastructure. That sentiment has weighed on tech shares as traders shift their focus from the earliest winners of the AI trend to companies set to benefit from the billions of dollars pledged by hyperscalers like Amazon.com Inc., Alphabet Inc. and Microsoft Corp. Firms seen as being hurt by AI, including software stocks, are also seeing shares dragged lower."
Palantir shares failed to rally into quarterly results for the first time in two years, falling about 29% from the November peak and over 15% to start 2026, placing them among the 15 worst S&P 500 performers. Shares continue to trade near 142 times expected earnings, the third-highest multiple in the index. Analysts forecast adjusted EPS up 63% to $0.23 and revenue of $1.3 billion, a 61% year-over-year increase for Q4 2025. Investors are demanding demonstrable results and valuation-attractive opportunities. Mounting Big Tech skepticism and a shift toward hyperscalers benefiting from AI increase pressure for strong forward guidance.
Read at www.mercurynews.com
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