PALO ALTO, Calif. — Palantir Technologies has adjusted its full-year outlook upward, yet its latest quarterly results fell short of heightened investor expectations, resulting in a notable decline in shares during after-hours trading on Monday.
The analytics software firm reported first-quarter revenues of $884 million, representing a 39% increase compared to the previous year, and surpassing analyst projections. Adjusted earnings per share reached 13 cents, up from 8 cents reported a year ago, aligning with Wall Street estimates. However, persistent optimism following extraordinary earnings in previous quarters may have set the bar higher for investors.
Before the earnings announcement, Palantir’s stock had surged 64% since the start of the year and had increased more than five-fold over the last 12 months. The company’s recent performance has been fueled by optimism surrounding its potential in the enterprise AI market and initiatives aimed at enhancing government efficiency.
Following the release of its earnings report, shares of Palantir dropped more than 9%, settling at $112.32 in after-hours trading. This retreat raises questions about the stock’s technical strength, particularly as it nears significant resistance levels.
Technical analysis reveals that the stock might be forming a double top pattern, a possibility intensified by recent peaks and subsequent selling pressure. Palantir achieved a record high in mid-February, but the stock has recently encountered difficulties maintaining momentum around that threshold.
Several key support levels are now in focus for investors. The $97 mark stands out as an area of interest, positioned slightly above the 50-day moving average. A sustained close below this level could push the stock down to around $83, a critical threshold that aligns with last year’s trends.
In the event of a more substantial decline, the stock could test the $66 level, which coincides with the 200-day moving average and significant historical lows. This level would likely draw buying interest due to its past significance and the overall market sentiment.
Conversely, should the stock rebound, investors should keep an eye on the $125 resistance level. This area, just above Monday’s closing price, corresponds with previous highs from May and February, making it a focal point for potential upward movement.
As market dynamics continue to evolve, all eyes will be on Palantir to see if it can regroup after the earnings report setback and whether it will break through resistance levels or find stability at critical support.