PLTR reports $1.63 billion in Q1 revenue, up 85% YoY, but shares lag the S&P 500 amid profit-taking and sector rotation.
Palantir Technologies (PLTR) shares have fallen 35% year-to-date, underperforming the S&P 500’s 8.7% gain, as investors lock in profits from last year’s AI-driven rally. The stock is down 45% from its 52-week high, despite strong fundamentals, including $1.63 billion in first-quarter revenue, an 85% year-over-year increase driven by a 104% surge in U.S. business.
The sell-off reflects broader sector rotation, with investors shifting into AI memory chip stocks like Sandisk (SNDK) and Micron (MU). Sentiment has also been weighed down by insider selling and concerns over slower international commercial growth. Analysts remain bullish, with the last five actions all rating PLTR a Buy.
Market reaction has been muted, as focus shifts to valuation concerns and macroeconomic uncertainties affecting high-growth tech stocks.