Palantir Shares Fall in Europe Despite Strong AI-Driven Earnings
Palantir Technologies’ shares dropped nearly 6% in early Frankfurt trading on Tuesday, as investors took profits despite another strong quarterly update from the U.S. software and data analytics firm. The decline paused the company’s record-breaking rally, which has seen its valuation more than double in 2025.
On Monday, Palantir forecast fourth-quarter revenue above analyst expectations, supported by the surging adoption of artificial intelligence (AI) across both government and commercial sectors. The company’s growing leadership in AI-powered data analytics continues to drive investor interest, even as market sentiment cools.
By 07:05 GMT, Palantir’s Frankfurt-listed stock was down 5.8%, reflecting broader weakness in Big Tech shares. Nasdaq futures also pointed to a sharply lower open, down about 1.3%, as investors adjusted their positions after weeks of strong gains.
Meanwhile, the Frankfurt-listed shares of the “Magnificent Seven” — Meta, Tesla, Alphabet, Amazon, Nvidia, Apple, and Microsoft — also slipped between 0.9% and 2.6%, adding to the cautious tone in global tech markets.
Despite the pullback, analysts note that Palantir remains one of the top AI growth stories of the year, with expectations for continued momentum in the months ahead.
