Alex Karp, CEO of Palantir Technologies, attends the Pennsylvania Energy Innovation Summit held at Carnegie Mellon University in Pittsburgh, Pennsylvania, USA on July 15, 2025.
Nathan Howard | Reuters
It was a tough November Palantir.
The software analytics provider’s stock fell 16% in its worst month since August 2023 as investors dumped AI stocks on valuation concerns. Meanwhile, prominent investor Michael Varley has made further bets on artificial intelligence trading, placing a bet on the company.
Palantir is off to a strong start in November.
The Denver-based company beat Wall Street’s third-quarter profit and revenue expectations. Palantir also posted $1 billion in quarterly revenue for the second year in a row, but concerns about high valuations led to a post-print decline.
In a note to clients, Jefferies analysts called Palantir’s valuation “extreme” and argued that investors will find better risk-reward in these AI stocks: microsoft and snowflake. Analysts at RBC Capital Markets expressed concern about the company’s “increasingly concentrated growth profile,” and Deutsche Bank said the valuation was “very difficult to understand.”
Adding to the post-earnings decline was the revelation that Berry was betting on Palantir and AI chipmakers. Nvidia. Barry, widely known for predicting the 2008 housing crisis and for his portrayal in the movie “The Big Short,” later accused hyperscalers of artificially boosting profits.
Palantir CEO Alex Karp appeared on CNBC twice in a week and was a vocal critic of the front lines, accusing Barry of “market manipulation” and calling investor behavior “terrible.”
“The idea that Chip and Ontology are things you want to short is batshit. It’s crazy,” Karp said on CNBC’s “Squawk Box.”
Despite the vicious decline, Palantir did win some deals this month. This includes a multi-year agreement with consulting firm PwC to accelerate the adoption of AI in the UK, and a deal with aircraft engine maintenance company FTAI.
However, these announcements did little to dispel the valuation concerns that plagued all AI companies in November.
Investors across the board are willfully discarding high-priced groups, citing soaring valuations and concerns about bubbles.
In November, Nvidia withdrew more than 12%; microsoft and Amazon Each fell about 5%. Quantum computing name: righetti computing and D Wave Quantum More than a third of its value has fallen.
apple and alphabet It was the only one of the seven Magnificent stocks to end the month with gains.
Although questions remain about Sill and Palantir’s valuations, these concerns are not new concerns.
Even after the stock price plunged, the company’s stock still trades at 233 times forward earnings. By comparison, Nvidia and Alphabet trade at about 38x and 30x, respectively, as of Friday’s close.
Mr. Karp, a longtime defender of the company, has seized the opportunity to clap back at critics, arguing in a letter to shareholders that the company is making it possible for ordinary investors to achieve rates of return that were once “restricted to Palo Alto’s most successful venture capitalists.”
“Turn on your traditional TV and see how unhappy the people who didn’t invest in us are,” Karp said on an earnings call. “Have fun, eat your popcorn. They’re crying. We’re making this company better every day, and we’re doing it for this country, for our allies.”
Palantir declined to comment on the matter.
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