bing news | Here’s Why Palantir Is Winning Everywhere, Except in the Stock Market

Palantir (NASDAQ: PLTR) has seen its once‑spectacular run stall, with the stock now down more than 28 % from its late‑2025 peak despite consistently beating earnings expectations. The company posted a striking 70 % year‑over‑year revenue increase in Q4 2025 and outperformed analyst sales and EPS estimates by 6.3 % and 8.7 % respectively—numbers that would have driven the share price into the teens a year ago. Yet investors have stopped rewarding these beats, and the market appears desensitized to Palantir’s positive surprises. Revenue beats now seem expected because analysts rely on Palantir’s own low‑balled guidance, and unless the firm can deliver double‑digit earnings surprises, the stock is unlikely to see further upside.

A second factor is the still‑inflated valuation. Even as the broader AI rally cools, Palantir trades at roughly 180 × free cash flow and 234 × earnings, far above typical multiples for high‑growth software companies. Analysts have priced in multiple years of accelerated execution, but without a sustained period of earnings growth the premium looks untenable. The market’s belief that a software business with high margins justifies such a lofty price tag is weakening, especially as the industry’s valuation norms shift.

Finally, the broader software sector is losing its “golden goose” status. SaaS companies once commanded lofty sales‑to‑price ratios on the premise that subscription revenue would be perpetual, but advances in AI are making code creation accessible to non‑technical users, eroding the moat that firms like Palantir rely on. The S&P 500 software index is already down over 21 % year‑to‑date, signaling a sector‑wide reassessment. Given these dynamics, the outlook for PLTR is sideways or modestly declining, with any meaningful rally unlikely to return until at least the latter part of 2027.

Read more: https://247wallst.com/investing/2026/04/03/heres-why-palantir-is-winning-everywhere-except-in-the-stock-market/

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I have been watching with fascination the dropping of software company #share prices.
I originally thought that people were worried about #ai being used by #softwarecompanies but no, they believe that #ai will replace them.

Most of the #softwarecompanies create systems for data capture so they can do basic functionality…take accounting: payables, receivables and reconciliation. Taxes are paid based upon this.

Make this up and your company will suffer in so many ways.

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