Now Reading: Palantir flips narrative as tech earnings reveal cyclical fears
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Palantir flips narrative as tech earnings reveal cyclical fears
Palantir flips narrative as tech earnings reveal cyclical fears
Palantir Technologies posted its 12th consecutive quarter of beating revenue projections, flipping a negative narrative that had dragged its shares down 29 per cent this year. The software firm now sits between…
The Story in Brief
Palantir Technologies posted its 12th consecutive quarter of beating revenue projections, flipping a negative narrative that had dragged its shares down 29 per cent this year. The software firm now sits between proprietary data and large language models, livemint.com reports. But across tech earnings, good reports were not good enough. Storage chip maker Sandisk saw sales jump 372 per cent from last year and gross margins hit nearly 85 per cent, yet its shares fell 7 per cent after weak guidance. Western Digital dropped 13 per cent. Advanced Micro Devices beat on earnings and revenue but still lost 7 per cent as the stock had rallied into the report. AppLovin’s fourth straight quarter of decelerating growth halved its share price this year, and Datadog slid 19 per cent after warning its biggest AI customer was cutting usage despite a new long-term contract.
The Indian Opinion
The week’s earnings shout a familiar Indian market lesson: good news is never enough when greed has run ahead. Bulls who piled into AppLovin and Datadog at triple-digit price-earnings ratios got burned by any hint of deceleration, while Palantir’s turnaround was cheered only because expectations were so low. The lazy narrative pits AI winners against losers, but the real story is valuation discipline. Sandisk’s 85 per cent gross margin looks like a peak, not a floor. The concrete test: can Palantir or AMD sustain revenue acceleration through the next quarter without fresh hype?
Source: livemint.com
This story was synthesised by AI from the source linked above.
