Benzingaยท2025-11-08 02:38Core Viewpoint - Palantir Technologies Inc. experienced a significant stock decline of over 11% despite reporting better-than-expected quarterly results, leading CEO Alex Karp to accuse short sellers of market manipulation [1][2]. Financial Performance - Palantir reported third-quarter revenue of $1.18 billion, marking a 63% increase year-over-year, with earnings per share of $0.21, both surpassing analysts' expectations [5]. - The stock price fell approximately 8% following the earnings report and continued to decline by nearly 7% the next day [5]. - Despite the recent drop, Palantir's stock has surged 136.64% in 2025, raising its market capitalization to over $421.93 billion [5]. Valuation Concerns - Palantir's stock trades at about 220 times forward earnings, which is comparable to Tesla Inc., while Nvidia and Meta Platforms have forward price-to-earnings ratios of 33 and 22, respectively [3]. - Short seller Andrew Left described Palantir as "detached from fundamentals and analysis" and set a price target of $40 [4]. Market Sentiment - CEO Karp criticized short sellers, particularly targeting Michael Burry, for betting against profitable companies in the AI sector, calling such actions irrational [2][3]. - Karp emphasized that the recent surge in Palantir's share price benefits not only Wall Street but also retail investors [6].