TRADE SETUP

Where do we stand fundamentally?

Palantir reported Q1 2025 revenue of $884 million, surpassing Wall Street’s $863 million forecast, driven by a 71% surge in U.S. commercial revenue and a 45% increase in U.S. government contracts. The company raised its full-year revenue outlook to $3.89–$3.90 billion, up from $3.74–$3.76 billion. Despite this, PLTR stock fell 12% on May 6 due to earnings per share ($0.13) meeting but not exceeding expectations and concerns over a 10% decline in international sales. Analysts cite Palantir’s high valuation as “irrational,” with shares trading at a premium despite robust growth.

PLTR reached the 130 level before the earnings report and is pulling back. A rejection here will lead to a deeper pullback into the 80-100 zone.

We need a sustained breakout above 130 for the rally higher to continue. I am inclined to short trade in the short term due to international sales concerns.

_{I am taking a near-term short-trade entry with an SL above 120 to target 81.}