Economic Indicators - Private sector employment in the U.S. increased by 22,000 jobs in January, significantly below the expected growth of 45,000 jobs, following a downwardly revised increase of 37,000 jobs in December [25][26] - The modest increase was primarily driven by a jump in employment in the education and services sector, which added 74,000 jobs [26] Stock Market Performance - Major U.S. index futures indicate a flat open, with stocks lacking direction after a weak previous session [1] - The tech-heavy Nasdaq experienced a notable decline, dropping 336.92 points or 1.4 percent to 23,255.19, while the S&P 500 fell 58.63 points or 0.8 percent to 6,917.81, and the Dow decreased by 166.67 points or 0.3 percent to 49,240.99 [5] - Advanced Micro Devices (AMD) saw a significant drop of 10.1 percent in pre-market trading after disappointing first-quarter guidance, despite reporting better-than-expected fourth-quarter results [2][3] - Conversely, Super Micro Computer (SMCI) shares surged by 9.5 percent in pre-market trading after exceeding fiscal second-quarter estimates and raising its full-year revenue forecast [3] Sector Performance - Software stocks performed poorly, with the Dow Jones U.S. Software Index declining by 3.5 percent, marking its lowest closing level in over nine months [6] - Semiconductor stocks also faced substantial weakness, with the Philadelphia Semiconductor Index tumbling by 2.1 percent, and NXP Semiconductors (NXPI) shares dropping by 4.5 percent despite exceeding analyst estimates [7] - Retail giant Walmart (WMT) benefited from the rotation out of tech, surging by 2.9 percent and surpassing a $1 trillion market capitalization [7][8] - Gold stocks experienced a rebound, with the NYSE Arca Gold Bugs Index spiking by 4.4 percent amid rising gold prices [9] International Markets - Asian stocks ended mixed, with software stocks declining due to fears over AI impacting future growth [12] - The Eurozone's inflation rate dropped to 1.7 percent in January, below the 2 percent target, influenced by falling energy prices and a stronger euro [18] - The Eurozone private sector recorded its slowest growth in January, with a composite output index of 51.3, indicating expansion for the thirteenth consecutive month [20]

Is the market for artificial intelligence (AI) services past its expiration date? ...

DA Davidson lowered the firm’s price target on Palantir (PLTR) to $180 from $215 and keeps a Neutral rating on the shares. The company reported an outstanding close to 2025 with revenue growth accelerating further due to relentless US demand for AI solutions, and Palantir remains well positioned to drive enterprise AI adoption and value as it maintains a rapid pace of innovation on the platform, the analyst tells investors in a research note. The firm adds however that with the after-hours advance, Palanti ...

Core Viewpoint - The article emphasizes the importance of generating alpha through independent investment strategies, focusing on a generalist approach across various sectors with potential for outperforming the S&P 500 [1] Group 1: Investment Strategy - The company manages a family portfolio primarily through a Self Managed Super Fund, aiming for a holding period that ranges from a few quarters to multiple years [1] - The investment approach includes building and maintaining spreadsheets that track historical financial data, key metrics, guidance trends, and performance indicators [1] - The company prefers assessing past performance and broad outlooks on key drivers of valuation rather than projecting long-term financials through DCF models [1] Group 2: Research Methodology - The research process involves monitoring industry news, reports, and other analysts' coverage, particularly during significant events like CEO changes [1] - The company conducts reverse DCF analyses for firms trading at high multiples to understand implied growth rates [1] - Key drivers of DCF valuation considered include revenues, costs and margins, cash flow conversion, capital expenditures, and interest rates [1]

Group 1 - The fourth quarter earnings season is ongoing, with major companies like Alphabet, Amazon, AMD, Qualcomm, and Palantir reporting results [1] - As of January 30, 33% of S&P 500 companies have reported their fourth quarter results, with an estimated 11.9% increase in earnings per share, marking the 10th consecutive quarter of annual earnings growth for the index [2] - Analysts initially expected an 8.3% increase in earnings per share, which was revised up due to strong performance from tech companies, following a 13.6% growth rate in the previous quarter [4] Group 2 - Big Tech companies are setting the tone for the earnings season, with ongoing capital expenditures and themes such as artificial intelligence and economic policies influencing market dynamics [5] - Upcoming earnings reports will include updates from companies like Disney, Chipotle, PepsiCo, Uber, and Snap, indicating continued investor interest in diverse sectors [5]

Core Insights - Palantir Technologies Inc. is recognized as one of the top AI stocks to watch, with Wedbush analyst Dan Ives maintaining an Outperform rating and a price target of $230.00, highlighting the company's leadership in the AI sector with its AIP product moat [1][4]. Financial Performance - Palantir reported FY4Q25 earnings of $1.41 billion, surpassing Wall Street estimates of $1.33 billion, driven by increased spending on AI tools from both government and business sectors [2]. - CEO Alex Karp stated that the earnings results are among the best in the tech industry over the last decade, with the company delivering a strong performance across all metrics [3]. Future Guidance - The company provided FY26 guidance that exceeded market expectations, indicating continued growth potential as its AIP product accelerates, particularly in the US commercial sector [4].

Core Insights - The article discusses the significant growth and potential red flags associated with Nvidia and Palantir, two leading companies in the artificial intelligence sector, highlighting a concerning trend of insider selling that may indicate overvaluation [3][11][18]. Company Overview - Nvidia and Palantir have experienced substantial stock price increases, with Nvidia's market cap rising by nearly $4.3 trillion and Palantir's shares increasing by almost 2,200% since the end of 2022, driven by their sustainable competitive advantages [2][3]. - Nvidia's GPUs dominate the AI-accelerated data center market, providing unmatched compute capabilities that support rapid decision-making and large language model training [4][5][6]. - Palantir's software platforms, Gotham and Foundry, leverage AI and machine learning, with Gotham primarily serving U.S. government contracts, ensuring predictable sales growth [8][9][10]. Insider Trading Activity - Over the past five years, insiders at Nvidia and Palantir have sold a net total of $12.83 billion more in stock than they have purchased, raising concerns about the companies' valuations [13][18]. - Insider buying activity has been minimal, with Nvidia executives last purchasing shares in December 2020 and Palantir seeing only $7.8 million in insider buys since January 2021 [17][18]. - The lack of insider buying, combined with significant selling, suggests that insiders may not view their companies' shares as attractively priced [18]. Valuation Concerns - The price-to-sales (P/S) ratio for Nvidia and Palantir indicates potential overvaluation, with Nvidia's P/S ratio exceeding 30 and Palantir's nearing 100, historically signaling a bubble for industry leaders [19].

Market Analysis by covering: Palantir Technologies Inc. Read 's Market Analysis on Investing.com ...

Core Insights - Palantir Technologies (PLTR) stock surged nearly +7% following a strong Q4 report, showcasing its advanced software platforms that assist in data integration and analysis for various sectors, including defense and finance [1][2] Q4 Highlights - Palantir achieved a record quarterly sales of $1.4 billion, marking a 70% increase from Q4 2024's $827.52 million and exceeding estimates of $1.34 billion by 4% [4] - U.S. revenue rose 93% to $1.07 billion, driven by a 137% increase in U.S. commercial revenue, which reached $507 million [4] - The company reported a net income of $608 million, translating to an adjusted EPS of $0.25, up from $79 million or $0.14 per share in the same quarter last year, surpassing Q4 EPS estimates of $0.23 [5] - Palantir has exceeded EPS expectations for 13 consecutive quarters, with an average earnings surprise of 11.63% in the last four quarterly reports [6] Full-Year Results & Guidance - For fiscal 2025, Palantir's total revenue grew 56% year over year to $4.48 billion, with full-year adjusted EPS increasing to $0.75 from $0.08 in 2024 [9] - The company provided strong forward guidance, expecting Q1 sales between $1.53 billion and $1.54 billion, and full-year FY26 sales to rise to $7.18 billion to $7.2 billion, both significantly above Wall Street's forecasts [9][10] Valuation Considerations - Palantir's stock is currently trading at 142X forward earnings and 56X forward sales, which are considered high valuations compared to other tech stocks, such as Nvidia [11] - The average forward-looking P/E and P/S multiples for Palantir's industry are 31X and 5X, respectively [12] Market Sentiment - Despite a Zacks Rank 3 (Hold) indicating some caution regarding PLTR as a top tech pick for 2026, the company's strong performance and aggressive guidance may justify its premium valuation [14]

3 February 2026 | 6:21AM EST Equity Research Palantir Technologies (PLTR) Further gains in wallet share in 2026 catalyzed by enterprise AI deployments PLTR 12m Price Target: $182.00 Price: $147.76 Upside: 23.2% Palantir is indicated up 5% after hours post reporting 4Q revenue 5% above the Street and EBIT margin ~500ps above. 2026 revenue guidance is 14% above the Street and EBIT margin is ~700bps above. Palantir remains one of only a handful of software companies that is clearly benefiting from AI deploymen ...