High-flying American software giant Palantir (NASDAQ: PLTR) has just wrapped up its worst week since February, with the stock suffering heavy losses despite impressive earnings.
The crash came as Palantir CEO Alex Karp slammed short sellers, accusing them of “market manipulation” after “Big Short” investor Michael Burry disclosed bets against Palantir and Nvidia.
PLTR stock ended Friday’s session at $177, up 1.65% for the day, though shares have plunged over 13% in the past week. Still, Palantir’s advances in artificial intelligence remain a key driver behind its 136% year-to-date rally.
At current levels, Palantir stock is hovering just above its 50-day simple moving average (SMA) of $177.73, suggesting short-term price stability and a balance between buyers and sellers. Meanwhile, the 200-day SMA sits much lower at $135.32, underscoring a strong long-term uptrend that remains intact despite recent weakness.
PLTR stock next move
Now, fresh analysis from charting platform TrendSpider has shed light on the stock’s next move, whether Palantir can rally again after its steep pullback despite stellar earnings.
In the third quarter, Palantir reported $1.18 billion in revenue, up 63% year-over-year, marking its fastest growth since early 2022. Earnings per share came in at $0.21, beating Wall Street estimates by 25%. This performance extends Palantir’s streak to eight consecutive beat-and-raise quarters, showcasing consistent outperformance in a volatile market.
The company’s growth trajectory has been remarkable. Since Q1 2022, quarterly revenue has nearly tripled, from $446 million to $1.2 billion, while profitability has surged in parallel. Over the same period, EPS has risen from $0.02 to $0.21, with only one loss-making quarter in the last fifteen.
Margins tell a similar story. Palantir’s net margin has flipped from –9% in 2022 to +40%, reflecting powerful operating leverage. Free cash flow reached $311 million in the latest quarter, pushing its trailing 12-month total to $817 million, or a 21% FCF margin, evidence that growth is increasingly self-sustaining.
PLTR divided market attention
However, TrendSpider noted that the sell-off reflects a market divided between two narratives. Bulls point to flawless execution, rising profitability, and accelerating commercial adoption of Palantir’s AI platforms.
Bears, on the other hand, warn that the stock’s valuation may have outpaced fundamentals, with reliance on government contracts and intensifying competition potentially weighing on future margins.
Featured image via Shutterstock
