Published: November 5, 2025
Palantir Technologies’ stock traded lower on Wednesday as investors extended a two‑day pullback in high‑flying AI names—even after Palantir’s blockbuster third‑quarter results, a higher full‑year outlook, and a wave of new analyst price‑target increases. A broad tech wobble that began Tuesday continued to weigh on sentiment, with Palantir singled out as an example of rich valuations meeting sky‑high expectations. [1]
At a glance (Nov. 5, intraday)
- PLTR price: The shares recently traded around the high‑$180s after opening near $189 (intraday low ~$181; data as of 19:19 UTC).
- Backdrop: AI leaders led a broader tech sell‑off; Reuters noted Palantir fell ~8% Tuesday and another ~3.5% Wednesday midday as traders took profits. [2]
What’s moving PLTR today
- Market factor, not fundamentals: Wednesday’s weakness is tied to a wider tech retreat rather than a deterioration in Palantir’s outlook. Investors described the drop as profit‑taking after a long run, following a negative reaction to Palantir’s strong earnings. [3]
- Valuation in focus: Even bulls acknowledge PLTR’s premium. Reuters pegs the stock’s 12‑month forward P/E above 240x, far above peers like Nvidia—keeping valuation at the center of today’s debate. [4]
The numbers behind the narrative: Q3 2025 recap
Palantir posted record Q3 revenue of $1.181 billion (+63% y/y) and adjusted EPS of $0.21, with U.S. commercial revenue surging 121% y/y to $397 million. Management also highlighted record total contract value ($2.76B, +151% y/y), 204 deals of at least $1 million, and a Rule‑of‑40 score of 114%—all underscoring momentum in its AI platform (AIP). [5]
The company raised 2025 revenue guidance to $4.396–$4.400 billion and guided Q4 revenue to $1.327–$1.331 billion (~61% y/y). Management also lifted adjusted operating income and free‑cash‑flow targets. [6]
Context from the post‑earnings coverage: Reuters noted a new Nvidia collaboration to speed customer decision‑making and cited a memo—referenced by Palantir’s CTO—directing U.S. Army organizations to use Palantir’s Vantage platform, reinforcing demand on the defense side. [7]
Nov. 5: Fresh Wall Street reactions
- DA Davidson: Lifted its PLTR target to $215 on continued AI demand and accelerating growth. [8]
- Citigroup:$210 target (Neutral), with wrap‑ups today also noting multiple peers nudging targets higher. [9]
- Morgan Stanley:$205 target (Equal Weight), citing 63% growth with Q4 guidance pointing to 61% amid “monumental bookings.” [10]
- HSBC:$197 target (Hold), keeping a cautious stance on returns even as fundamentals improve. [11]
Flows & positioning watch
ARK Invest trimmed exposure ahead of earnings—selling ~38,000 PLTR shares on Nov. 3—a modest move but one that gained attention given retail interest in the name. [12]
Why shares are down despite stellar results
- Expectation reset: After a year of big gains and multiple guidance raises, even a beat‑and‑raise quarter can trigger profit‑taking when valuations are stretched. Reuters highlighted PLTR’s forward multiple north of 240x as a key pressure point. [13]
- Macro AI chill: The two‑day tech slump hit AI leaders hardest; Wednesday’s selling was described as a “breather” rather than panic, with Palantir emblematic of the dynamic. [14]
What to watch next
- Execution on Q4 guidance: Investors will look for revenue in the $1.327–$1.331B range and whether elevated margins and cash generation persist. [15]
- Commercial AI adoption: U.S. commercial growth (+121% y/y in Q3) remains the swing factor for 2026–2027 models; watch bootcamps/AIP conversions and large‑deal cadence. [16]
- Gov’t pipeline headlines: Any follow‑through on the Army’s Vantage directive and new federal wins could buffer macro volatility. [17]
- Valuation vs. durability: With PLTR now an S&P 500 constituent (since Sept. 23, 2024), incremental fund ownership helps—but today’s action shows multiples still matter. [18]
Key facts (quick reference)
- Q3 revenue: $1.181B (+63% y/y)
- Q3 adjusted EPS: $0.21
- U.S. commercial revenue: $397M (+121% y/y)
- Record TCV: $2.76B (+151% y/y)
- FY25 revenue guide: $4.396–$4.400B
- Q4 revenue guide: $1.327–$1.331B
All per company filings. [19]
Bottom line
Nov. 5, 2025 finds Palantir stock under pressure for market‑technical reasons, not because its AI story stumbled. The company just delivered one of the most eye‑catching software quarters of the year, boosted guidance again, and collected fresh price‑target hikes. The debate now hinges on how quickly growth—and cash flow—can catch an elite valuation in a market that’s finally taking a breath. [20]
This article is for informational purposes only and does not constitute investment advice.
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.sec.gov, 6. www.sec.gov, 7. www.reuters.com, 8. www.investing.com, 9. www.marketbeat.com, 10. www.tipranks.com, 11. www.gurufocus.com, 12. seekingalpha.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.sec.gov, 16. www.sec.gov, 17. www.reuters.com, 18. press.spglobal.com, 19. www.sec.gov, 20. www.reuters.com
