PLTR Drops 3% In Premarket Despite Blowout Results; Retail Bulls Load Up On The Dip

• Palantir reported Q1 revenue and profit well ahead of expectations and raised its full-year forecasts.
• Retail traders dismissed concerns, advising buying the stock and expecting a sharp rebound.
• Stocktwits sentiment for PLTR shifted to ‘extremely bullish’ from ‘bearish.’

Shares of Palantir Technologies dipped over 3% in the premarket session on Tuesday, despite another blowout quarterly report by the AI analytics company the previous day.

Retail investors on Stocktwits expressed frustration over the drop, with many saying they had bought or were adding to their positions. 

“The valuation concern do not hold any traction," argued a user. “Why the hell people waited until the stellar earnings to bring the stock down? The valuation got only better after the earnings. If valuation was a concern, it should have been a bigger concern before the earnings. Doesn't make sense.”

“When the upgrade comes out tomorrow morning $PLTR will fly like a rocket,” said a trader. Another wrote: “$PLTR Bought 1,500 shares. Outstanding results for such a very high growth AI tech company. GLTA.”

The retail sentiment for PLTR flipped to ‘extremely bullish’ early Tuesday, compared to ‘bearish’ the previous day, a day earlier, signaling a sharp positive shift among traders. 

Burry’s Fresh Short Weighs PLTR Sentiment

While the results were strong, sentiment was partially weighed down by a fresh bearish view from ace investor Michael Burry, who said in a Substack post that he added a new short position in the stock just before earnings.

In fact, Burry disclosed positions that reflect his view that tech valuations are stretched and signal expectations of declines next year.

PLTR Results Recap 

Palantir reported that its first-quarter revenue increased 85% to $1.63 billion – more than analysts’ expectations – and raised its 2026 forecast. Last quarter, revenue from the U.S. government increased 84% to $687 million while the company’s overall net income quadrupled to $876 million. 

CNBC commentator Jim Cramer noted that “Palantir(’s) free cash flow this quarter larger (was) than revenue in the year ago quarter. Lots of headlines that commercial was weak. Read the conference call. You won't be concerned.”

As of the last close, PLTR stock has declined 18% year to date. The company has been swept up in a broader selloff in software stocks, driven by Wall Street concerns that AI agents could replace many traditional software services.

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