Prediction: Palantir Stock Is Going to Plunge on May 5

2 hours ago 1

Sean Williams, The Motley Fool

Tue, April 28, 2026 astatine 4:26 AM CDT 4 min read

There's arguably thing that excites Wall Street and investors much than net season. Although geopolitical events, economical reports, and emotions tin propulsion and propulsion connected the benchmark S&P 500 (SNPINDEX: ^GSPC), firm operating results chopped done this subjectivity and supply investors with tangible reasons to beryllium optimistic oregon pessimistic.

After the closing doorbell tolls connected May 4, artificial quality (AI)-driven data-mining specializer Palantir Technologies (NASDAQ: PLTR) volition assistance the hood connected its first-quarter operating results. Next to AI titans similar Nvidia and Taiwan Semiconductor Manufacturing, determination mightiness not beryllium a much important net study for Wall Street and the AI commercialized than Palantir.

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A 20 dollar measure insubstantial airplane that's crashed and crumpled into a fiscal newspaper.

While Palantir has made a wont of blowing past the statement income and nett forecasts of analysts, this AI darling whitethorn person spot disconnected much than it tin chew this net season.

Palantir's header numbers are apt to impressment

Looking successful the rearview mirror, Palantir has managed to leap beyond analysts' net per stock (EPS) statement for 10 consecutive quarters. Additionally, the institution has been expanding its full-year income forecast connected a near-quarterly basis. Based solely connected these header numbers, there's been a batch to like.

For the March-ended quarter, Palantir is expected to person generated $1.54 cardinal successful sales, up 74% from the comparable 4th past year, and $0.28 successful EPS, which is much than treble what it generated per stock successful the archetypal 4th of 2025.

Palantir's outsize maturation has been chiefly spurred by its AI-fueled software-as-a-service platform, Gotham. This is the conception that assists the U.S. national authorities and its allies with subject ngo readying and execution, arsenic good arsenic information analysis. Palantir's multiyear contracts with the U.S. government, coupled with a deficiency of competitors astatine scale, are powering sustained double-digit growth.

But nary of this whitethorn beryllium capable erstwhile the opening doorbell rings connected May 5.

Palantir's valuation has go intolerable to warrant

Although past can't warrant the future, it tends to rhyme much often than not connected Wall Street and is an nonsubjective teacher for those consenting to listen. History has made wide that Palantir's valuation -- specifically its price-to-sales (P/S) ratio -- is an insurmountable headwind.

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