Palantir's 8.81% Surge Drives $16.66B Trade Third-Highest Daily Activity Amid Earnings Outperformance AI Momentum and CEO's Short-Seller Claims

Market Snapshot

Palantir Technologies (PLTR) surged 8.81% on November 10, 2025, closing with a trading volume of $16.66 billion, ranking third in daily market activity. Despite the single-day gain, the stock had declined over 13% in the preceding week, marking its worst performance since February. The price closed near its 50-day simple moving average ($177.73), suggesting short-term stability, while the 200-day SMA ($135.32) underscored a long-term uptrend.

Key Drivers Behind the Volatility

Earnings Outperformance and AI Momentum

Palantir’s Q3 2025 results reinforced its growth narrative, with revenue rising 63% year-over-year to $1.18 billion and earnings per share (EPS) of $0.21, exceeding estimates by 25%. This marked the eighth consecutive quarter of outperformance, extending its streak since early 2022. The company’s U.S. commercial revenue grew 121% Y/Y, driven by expanding AI adoption in sectors like government and enterprise. Analysts highlighted Palantir’s role as a key barometer for enterprise AI adoption, with its Foundry platform enabling clients to integrate AI-driven analytics at scale.

CEO’s Accusations of Short-Seller Manipulation

CEO Alex Karp intensified scrutiny by publicly accusing short sellers of “market manipulation” following Michael Burry’s disclosed bets against Palantir and Nvidia. The controversy coincided with a sharp selloff, as investors weighed conflicting narratives about the stock’s valuation. While bulls pointed to Palantir’s 136% year-to-date rally and 21% free cash flow margin as evidence of sustainable growth, bears warned that its high P/E ratio (423.65) and reliance on government contracts posed long-term risks.

Financial Health and Operational Leverage

Palantir’s financial metrics reinforced its resilience. Net margins improved from -9% in 2022 to 40% in 2025, reflecting strong operating leverage. Free cash flow reached $311 million in Q3, pushing trailing 12-month FCF to $817 million. The company’s balance sheet also showed strength, with a current ratio of 6.43 and minimal debt. However, insider selling activity—16 transactions totaling $234 million in the past three months—raised questions about potential overvaluation.

Analyst Sentiment and Market Positioning

Analysts remained divided, with price targets ranging from $155 to $255. Morgan Stanley and Wedbush raised their targets following Q3 results, citing Palantir’s AI-driven growth and expanding contract sizes. Conversely, DA Davidson maintained a “Neutral” rating despite upward revisions, reflecting caution about valuation. The stock’s beta of 2.63 highlighted its volatility relative to the market, while its 52-week high of $207.52 and low of $55.30 illustrated a wide trading range.

Strategic Partnerships and International Expansion

Recent collaborations, including a joint venture with Dubai Holding (Aither) and a partnership with Spain’s Valoriza, signaled Palantir’s push into international markets. These ventures aim to leverage its AI platforms for urban efficiency and public sector transformation, aligning with Dubai’s Economic Agenda D33 and Spain’s sustainability goals. Such expansions underscored Palantir’s ability to monetize AI solutions beyond its core U.S. operations.

Broader Market Context and AI Sector Dynamics

The stock’s performance reflected broader tech sector dynamics. Wedbush analyst Daniel Ives noted that Palantir’s selloff was part of short-term investor anxiety rather than a fundamental shift in the AI-driven bull market. The firm’s role in enterprise AI adoption, alongside peers like Snowflake and MongoDB, positioned it to benefit from a projected $550–$600 billion capital expenditure supercycle in AI infrastructure by 2026.

In conclusion, Palantir’s recent volatility stemmed from a mix of earnings strength, strategic advancements, and market sentiment divides. While its financial and operational metrics remain robust, investors must navigate risks tied to valuation, competition, and geopolitical dependencies. The stock’s trajectory will likely hinge on its ability to sustain AI-driven growth and address concerns about overvaluation.