{"id":121360,"date":"2025-11-04T14:14:08","date_gmt":"2025-11-04T14:14:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/121360\/"},"modified":"2025-11-04T14:14:08","modified_gmt":"2025-11-04T14:14:08","slug":"ai-boom-shows-strain-as-palantir-slumps-and-nasdaq-slides","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/121360\/","title":{"rendered":"AI boom shows strain as Palantir slumps and Nasdaq slides"},"content":{"rendered":"\n

Palantir blew past Wall Street expectations in its third quarter \u2014 raising its full-year guidance and touting triple-digit growth in its U.S. commercial business. Still, the retail-investor and Wall Street darling fell over 7%<\/a> before the bell on Tuesday, in line with a broader Nasdaq slide.<\/p>\n

Dan Ives of Wedbush credited a \u201cthis is as good as it gets\u201d reaction to results as the reason for the pullback. In a larger sense, as the Wall Street Journal<\/a> noted, \u201cA note of caution is creeping into markets.\u201d Ted Pick, CEO of Morgan Stanley, speaking early Tuesday in Hong Kong, posited<\/a> that the months-long run-up in major indexes could be making stocks vulnerable\u2014if enthusiasm lapses, there\u2019s nowhere to go but down.<\/p>\n

The analytics software and defense firm saw revenue surge 63%<\/a> over last year to nearly $1.2 billion, outperforming analysts\u2019 $1.09 billion estimate. U.S. commercial sales jumped 121%, driving overall U.S. growth of 77%. Operating margins hit 33% on a GAAP basis and 51% adjusted. Palantir also posted over half a billion in free cash flow and a \u201cRule of 40\u201d score \u2014 a key element of company management\u2019s favored scorecard \u2014 of 114, far above the 40% benchmark seen as desirable for elite firms in the field.<\/p>\n

CEO Alex Karp credited the company\u2019s Artificial Intelligence Platform for \u201ccompounding AI leverage\u201d across both its government and corporate clients. Palantir closed a record 204 deals<\/a> worth at least $1 million, including 53 above $10 million, with total contract value rising 151% to nearly $3 billion.<\/p>\n

Wedbush analyst Dan Ives called the quarter \u201canother validation moment for AI demand,\u201d dubbing Palantir the \u201cMessi of AI.\u201d The firm reiterated its Outperform rating and $230 price target. Palantir, Wedbush wrote, remains \u201cat the forefront of the AI revolution.\u201d<\/p>\n

The selloff in Palantir and the Nasdaq, set to open down about 1.3%, emblemizes a tense dynamic: America\u2019s entire stock market has arguably become a leveraged bet on AI. The Magnificent 7 tech giants, and now Palantir, account for a majority of S&P 500 earnings growth and capital spending. When AI optimism drives the market higher, it lifts nearly everything. But when it wobbles, even stellar results can\u2019t escape gravity.<\/p>\n

With record profits and still-surging U.S. demand, Palantir is proving it can monetize AI. The question now is whether this boom\u2014so central to both markets and the broader economy\u2014can keep compounding without a correction.<\/p>\n","protected":false},"excerpt":{"rendered":"Palantir blew past Wall Street expectations in its third quarter \u2014 raising its full-year guidance and touting triple-digit…\n","protected":false},"author":2,"featured_media":121361,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,72343,61,60,7389,4073,80,28647,72342],"class_list":{"0":"post-121360","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-dan-ives","12":"tag-ie","13":"tag-ireland","14":"tag-nasdaq","15":"tag-palantir","16":"tag-technology","17":"tag-wall-street-journal","18":"tag-wedbush"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/121360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=121360"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/121360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/121361"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=121360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=121360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=121360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}