Palantir's CEO Sparks a Sell-Off as the Nvidia Boost Fades
Published on 07/09/2026 at 03:34 | Redaktion boerse-global.de
Alex Karp is not one for measured diplomacy. The Palantir chief used a television interview this week to launch a blistering attack on developers of foundational AI models, accusing OpenAI and Anthropic of delivering "worthless tokens" to enterprise clients and essentially stealing value. The market reacted swiftly: Palantir shares slid 5.36 percent on Wednesday to €111.28, abruptly snapping a recovery rally that had been fuelled by a landmark partnership with Nvidia just days earlier.
That partnership, unveiled on July 1, sent the stock soaring nine percent in a single session, adding roughly $22 billion to the company’s market capitalisation. Under the deal, Palantir will integrate Nvidia’s open-source Nemotron models into its secure AI systems for U.S. government agencies and allied nations—a move that aligns neatly with the U.S. Army’s recent selection of Palantir as the data platform for its NGC2 modernisation programme. Yet the euphoria proved fragile.
Investors were already wrestling with a punishing valuation. Despite the recent pullback, Palantir trades at a price-to-earnings multiple of 145. The stock is down roughly 22 percent year to date, having hit a 2026 low of €93.30 in late June. It now sits about 14 percent below its 200-day moving average, a technical level that traditionally signals a lack of a sustained uptrend. The annualised volatility remains above 60 percent, underscoring the market’s extreme sensitivity to any whiff of disappointment.
Should investors sell immediately? Or is it worth buying Palantir?
Operationally, the numbers tell a different story. Revenue surged 85 percent in the first quarter of 2026, with the U.S. business more than doubling. Management has guided for full-year sales of around $7.6 billion, and for Q2 2026 specifically, the target is $1.8 billion in revenue with an adjusted operating profit of $1.07 billion. Free cash flow generation has been stellar—$899 million in the latest quarter, translating to a margin of 55 percent—and the balance sheet boasts $8 billion in cash. CEO Karp himself called the growth trajectory "historically strong."
But the bull case hangs on one critical hinge: the U.S. commercial segment must deliver at least 120 percent growth for the full year. Miss that self-imposed mark, and the argument for a stock priced for perfection collapses. Critics note that the majority of analysts still rate the shares a Hold, and the chart offers little comfort. The 14 percent gap below the 200-day line stands in contrast to an RSI of 54.9, which leaves room for further upside—but only if the fundamental story remains intact.
The next catalyst arrives with the Q2 earnings report. Hitting $1.8 billion in revenue would keep the upward scenario alive; any shortfall, especially in the closely watched U.S. growth rate, risks a sharp correction. Until then, the stock is likely to oscillate near its short-term moving averages. A drop below the year low of €93.30 would constitute a clear sell signal, while a decisive break above the 200-day average—currently around €134—would validate the longer-term growth narrative. For now, Karp’s verbal jabs have only added noise to a picture already defined by extreme expectations.
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