Stock Market Today, Feb. 12: Palantir Faces Valuation Scrutiny Despite 70% Revenue Growth
Palantir Technologies (NASDAQ:PLTR), AI-focused government and commercial software, closed Thursday at $129.13, down 4.83%. The stock fell after Michael Burry’s bearish thesis on Palantir and the broader AI cycle circulated, while investors are watching whether recent “blockbuster” results justify the stock’s premium valuation.
The company’s trading volume reached 73.4 million shares, which is 61% above compared with its three-month average of 45.6 million shares. Palantir Technologies went public in 2020 and has grown 1259% since its IPO.
How the markets moved today
The S&P 500 (SNPINDEX: ^GSPC) declined 1.57% to 6,832, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 2.03% to 22,597 as growth shares retreated. Among software - infrastructure industry peers, International Business Machines (NYSE:IBM) closed at $259.52 (-4.87%) and Leidos (NYSE:LDOS) finished at $171.44 (-0.90%), reflecting pressure on valuation-sensitive names.
What this means for investors
Palantir faced pressure after investor Michael Burry projected over 40% downside, renewing concerns that the stock’s valuation exceeds its fundamentals. The remarks landed despite a backdrop of strong operating performance. Fourth-quarter revenue increased 70% year over year, with U.S. commercial revenue up 137%. Management also provided guidance above Wall Street expectations. These results confirm strong demand for Palantir’s AI platforms among enterprise and government clients. However, the stock trades at a premium, which reflects ambitious expectations for continued AI-driven growth.
Recent upgrades from HSBC Global Research and Northland Securities highlight the potential for sustained growth, while some caution that future returns require near-perfect performance. Palantir’s outlook will depend on whether commercial momentum and margin expansion can justify its current valuation.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines, Leidos, and Palantir Technologies. The Motley Fool has a disclosure policy.
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