tech
Why Palantir's stock is down despite a stellar first quarter
There are doubts about valuation in the Anthropic Mythos era.
TL;DR
- Palantir's stock declined despite strong first-quarter earnings and revenue growth of 85%.
- Analysts suggest investor wariness stems from high valuations (85x forward P/E) and uncertainty in the tech sector, exacerbated by AI advancements.
- Competitors like Anthropic are making rapid progress, with its Mythos model showing significant capabilities.
- The software sector has seen a downturn, with the iShares Expanded Tech-Software Sector ETF down over 16% year to date.
- Lack of transparency in Palantir's government contract work is an additional factor weighing on the stock.
- Commercial revenue grew 133% year-over-year, but would have been higher if not for resource shifts to the public sector due to demand.
- Usage of Palantir's Maven intelligence platform has quadrupled over the past 12 months.