Palantir Stock Rebounds 1.65% with $12.7B Volume Ranking Fifth in U.S. Market

Market Snapshot

On November 7, 2025, , marking a positive day for the AI and data analytics firm. , securing it as the fifth-highest trading volume in the U.S. equity market. . Despite the recent volatility, , .

Key Drivers

Earnings Outperformance and Guidance Revisions

Palantir’s Q3 2025 results exceeded expectations, with revenue of $1.18 billion (up 63% year-over-year) and adjusted EPS of $0.21 (beating forecasts of $0.17). , reflecting robust demand for its AI and analytics platforms. U.S. , . These figures underscore Palantir’s expanding role in both public and private sector AI adoption. However, the market’s muted reaction to these results highlights a disconnect between operational performance and valuation expectations.

Valuation Concerns and Market Sentiment

A primary drag on Palantir’s stock has been its forward price-to-sales ratio of 110, a level analysts describe as “extreme” even for high-growth tech firms. This premium reflects skepticism about the company’s ability to sustain its current trajectory. Analysts noted that the market had already priced in years of perfect execution, leaving little room for upside surprises. The sell-off following the earnings report was exacerbated by a lack of margin for error in guidance and broader concerns about AI sector valuations.

Michael Burry’s Short Position and Investor Behavior

’s Scion Asset Management disclosed put options on 5 million Palantir shares, . Burry, known for his 2008 housing crisis predictions, is a high-profile bearish catalyst, amplifying market jitters. , particularly as AI competition intensifies. This move triggered profit-taking and reinforced perceptions of overvaluation, .

Broader Market and Sector Dynamics

, . , , including a prolonged U.S. . Additionally, . These factors contributed to a risk-off environment, .

Analyst Disagreement and Forward Outlook

Analysts remain divided on Palantir’s prospects. While some, like HSBC’s and DA Davidson’s , , including of , . , . , .

Strategic Positioning and Competitive Landscape

Palantir’s dominance in government contracts, . Army, . However, , as well as hardware-focused peers like Nvidia, continue to draw scrutiny. . For now, the market appears to prioritize operational execution over speculative growth, .