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Palantir Stocks Slide 6.19% Despite Nearly Doubling AI Revenue
Palantir Technologies shares were down 5.84% at $167.93 as of 9:30 a.m. ET on November 3, even though third-quarter revenue rose 96% to $2.313 billion and fourth-quarter guidance was set at $2.649 billion to $2.653 billion.
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What happened
Palantir Technologies shares were down 5.84% at $167.93 as of 9:30 a.m. ET on November 3, even though third-quarter revenue rose 96% to $2.313 billion and fourth-quarter guidance was set at $2.649 billion to $2.653 billion.
Confirmed
Global impact / market context
The share drop shows investors may demand more than rapid revenue growth. Total contract value, which means the worth of signed deals, rose only 6%, so future revenue depends on converting new deals into sales.
Analyst inference
Palantir combines fast AI-driven revenue growth with a high 47% operating margin, which means profit after core costs. Yet slower deal growth may make investors question whether current growth can continue.
Analyst inference
What to watch
- Watch total contract value, which rose just 6% to $2.918 billion, well behind revenue growth, as a sign of future deal momentum. Confirmed
- Track whether Palantir converts new contracts into revenue quickly enough to meet its fourth-quarter guidance midpoint of $2.651 billion. Proposed
- Observe U.S. commercial revenue, up 148% to $984 million, to see if private-sector demand keeps supporting growth despite share weakness. Analyst inference