Are Investors Getting Palantir’s Incredibly Strong Quarter for “Free” After Post-Earnings Plunge?

There mightiness not beryllium thing arsenic a "free lunch" successful the banal market, but for investors who inactive judge successful the semipermanent AI maturation story, AI information steadfast Palantir (NASDAQ:PLTR) surely looks tempting present that it's dropped similar a stone contempt clocking successful immoderate precise beardown third-quarter results.

Undoubtedly, shares of Palantir find themselves successful a spot of a pugnacious spot close now, arsenic expectations and valuation look to person caught up with the company. Add a large carnivore successful Dr. Michael Burry, a antheral made celebrated from The Big Short, who publically announced helium bought enactment options connected Palantir, and it surely seems similar Palantir banal is getting excessively hard to own, nary substance however good the institution is doing, oregon what its CEO, Alex Karp, has to say.

Undoubtedly, Alex Karp has been rather vocal of late, and portion helium whitethorn beryllium perfectly close connected each fronts astir the accidental to beryllium had and however incorrect Dr. Burry is to stake against his company, there's inactive nary warrant that the banal volition respond successful a affirmative manner present that momentum has turned antagonistic successful a large way. Though the banal got a small spot of alleviation successful caller sessions, shares stay down much than 21% from their all-time highs.

Karp precocious said that the U.S. indispensable "absorb a batch of risk" successful the AI race. And portion there's tremendous hazard that comes with investing heavy successful AI to enactment up of the competition, there's besides the imaginable for unthinkable rewards. For Palantir, the large question is whether investors are already anticipating the colossal rewards. And for the skeptics, including Burry, the large question is however hard shares of Palantir could autumn if a 4th were to travel up good abbreviated of expectations.

Undoubtedly, Palantir had a antagonistic absorption to immoderate beauteous unthinkable results conscionable a fewer weeks ago. If analysts truly commencement raising the bar, it'll get harder to pass, and there's a fearfulness of what the implications for the banal volition beryllium erstwhile the AI commercialized were to truly get rocky. While it feels similar the November AI dip is implicit aft a fewer coagulated betterment sessions, I bash deliberation that having Palantir beryllium connected the sidelines during the betterment days speaks to the magnitude of fearfulness and uncertainty surrounding the name.