Palantir stock is dropping despite strong revenue and raised guidance
Shares of Palantir Technologies Inc (NYSE:PLTR) are 8.3% lower at $113.56 before the bell, despite beating revenue expectations and raising its full-year outlook. The company posted first-quarter revenue of $884 million, topping estimates of $863 million, while adjusted earnings of 13 cents per share matched forecasts. However, the stock is under pressure as traders weigh the modest size of the beat, slowing customer growth, weakness in Europe, tariff-related concerns, and valuation headwinds.
PLTR has finished eight of the last 10 sessions higher, riding support from its 10-day moving average. On Monday, the equity came within striking distance of its Feb. 19 all-time high of $125.41. Today’s pullback puts the stock back below recent support at the $110 level and trims into its impressive 63.7% year-to-date gain.
At least five analysts raised their price targets following the report, including Wedbush, which adjusted its forecast to $140 from $120. Coming into today, PLTR's average 12-month price target stands at $97.05 -- a 21.6% discount to last night’s close -- suggesting more upward revisions could follow.