Palantir Stock Has Struggled Recently — Can Q4 Earnings Spark a Comeback In PLTR?

Core Viewpoint - Palantir (PLTR) is set to release its fourth-quarter financial results on February 2, with recent stock performance reflecting investor caution amid concerns over high valuation and potential AI bubble [1][2]. Group 1: Stock Performance - PLTR shares have declined over 24% in the past three months and are down more than 27% from their recent high, underperforming the broader market [1]. - Despite the recent pullback, PLTR stock is still up over 88% year-over-year, indicating strong initial enthusiasm [3]. - The stock's 14-day Relative Strength Index (RSI) is currently at 31.7, suggesting it may be approaching oversold territory [4]. Group 2: Earnings Expectations - For Q4, Palantir anticipates revenue of $1.329 billion, representing a 13% increase from the previous quarter and 61% growth compared to the same period last year [7]. - Management indicated that Q4 could show the strongest sequential revenue growth [7]. Group 3: Market Sentiment and Volatility - Options traders are preparing for a post-earnings move of approximately 9.1%, which is lower than Palantir's average earnings reaction of about 13% over the last four quarters [5]. - The most recent earnings report in Q3 resulted in an 8% decline in stock price [5]. Group 4: Growth Drivers - Palantir's revenue growth and widening profit margins are driven by increasing demand for its Artificial Intelligence Platform (AIP), which is expected to be reflected in Q4 financials [6].