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There's plenty for bulls and bears to hash out over Palantir Technologies (PLTR), a maker of data analytics software, amid the company's premium valuation. Palantir stock fell below a key trading level on Nov. 6 amid a broad market retreat and a pullback in many artificial intelligence stocks. Palantir reported third quarter earnings and revenue that topped Wall Street targets, boosted by U.S. government and commercial growth. In Q3, Palantir earnings were 21 cents on an adjusted basis, doubling from a year earlier. Revenue climbed 63% to $1.18 billion, the software maker said. Analysts expected Palantir to report Q3 adjusted profit of 17 cents per share and revenue of $1.09 billion. September quarter revenue beat estimates by 8%, roughly the same as in the previous quarter. Meanwhile, Palantir on Nov. 6 fell below its 21-day exponential moving average in high volume. That's a bearish signal. In an exponential moving average, the most recent price action carries a higher weighting. In 2025, Palantir stock has now gained 137%, but shares are down from an all-time intraday high of 207.52 set on Nov. 3. Joining Palantir stock in the Nov. 6 sell-off were AI chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD), data center builders CoreWeave (CRWV) and Nebius (NBIS) and Arista Networks (ANET). Oracle (ORCL) stock also fell. Palantir Stock: Outspoken CEO Here's what investors need to know about the data analytics software maker and its chief executive, Alex Karp. Palantir's roots are in predictive-based artificial intelligence, mainly using pattern recognition tools. It's now upgrading products to generative AI, which relies on advanced reasoning models and provides novel outputs based on conversational user prompts. Since its founding, Palantir has provided data analytics tools to government customers for intelligence gathering, surveillance, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services. Generally, Palantir stock has gained amid views that the company seems poised to win more U.S. government business during the Trump administration. Palantir recently hosted its eighth artificial conference for customers. Further, Palantir initially rolled out its "Artificial Intelligence Platform" in early 2023. AIPCon is the company's flagship marketing event showcasing real-world AI use cases. Here's a look at Palantir's go-to-market strategy in artificial intelligence. Further, Palantir is among AI stocks to watch. The IBD Methodology: How To Invest In Stocks While Managing Risks Several members of the Trump administration have ties to Palantir, a company co-founded by longtime venture capitalist Peter Thiel. They include David Sacks, tapped as White House artificial intelligence and crypto czar. Meanwhile, Palantir seems well-positioned for the Trump administration's plans for a "Golden Dome" air and missile defense shield that can protect the U.S. from long-range strikes. But it faces Golden Dome competition from Lockheed Martin (LMT). Palantir Stock Technical Ratings Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump's Presidential election win. PLTR stock holds an Accumulation/Distribution Rating of B-minus. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral. Also, Palantir stock holds a stellar Composite Rating of 99 out of a best-possible 99, according to IBD Stock Check-up. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better. Meanwhile, PLTR stock has a 21-day ATR of 4.52. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs. YOU MAY ALSO LIKE: Want To Trade Options? Try Out These Strategies Monitor IBD's "Breaking Out Today" List For Companies Hitting New Buy Points IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today
