Is Palantir Stock a Buy, Sell, or Hold Ahead of Q4 Earnings?

Core Viewpoint - Palantir Technologies is experiencing a notable decline in stock price, attributed to concerns over a potential AI-driven market bubble and its high valuation compared to peers [1][2] Financial Performance - Palantir is expected to report solid revenue and earnings growth in Q4, driven by strong performance in its U.S. business and demand for its Artificial Intelligence Platform (AIP) [6] - In Q3, Palantir's revenue increased by 63% year-over-year to $1.18 billion, with U.S. segment revenue surging by 77% year-over-year [7] - The U.S. commercial business recorded a remarkable 121% increase in revenue compared to the previous year, while U.S. government revenue grew by 52% year-over-year [7] Market Activity - Palantir reported a record total contract value of $2.8 billion in Q3, driven by a surge in large-scale deals, including 204 contracts worth at least $1 million [9] - The company closed 91 deals above $5 million and 53 deals exceeding $10 million, indicating strong contract activity [9] Investor Sentiment - Investors should be prepared for volatility around the upcoming Q4 earnings report, as Palantir has a mixed track record of surprising after earnings releases, with average post-report moves around 13% [3]