Why Palantir Stock Is Crashing Today

Core Viewpoint - Palantir Technologies' stock has experienced a significant decline following the release of its first-quarter earnings, despite reporting strong revenue growth driven by U.S. sales [1][2]. Financial Performance - Palantir reported Q1 earnings per share (EPS) of $0.13 on sales of $884 million, with revenue increasing by 39% year over year, surpassing Wall Street expectations [2]. - The growth was primarily fueled by a 55% year-over-year increase in major U.S. sales, prompting the company to raise its full-year forecast for 2025 [2]. Sales Performance - Despite the positive revenue growth, global sales saw a decline of 10% year over year, raising concerns about Palantir's ability to sustain overall growth at the current pace [3]. Valuation Concerns - Analysts express concern over Palantir's inflated stock valuation, with a price-to-earnings (P/E) ratio of 650, which is deemed excessively high [5]. - The high valuation necessitates flawless execution from the company for an extended period, which is questioned due to the recent decline in global demand [5].