US EditionJapan's Nikkei 225 Tanks over 4% as Asia Markets Drop Amid AI Valuation Concerns
Palantir shares fell up to 9% after Q3 earnings beat estimates, amid AI stock sell-off and valuation concerns with a forward P/E ratio near 240, analysts said.
- On Tuesday, Palantir Technologies plunged as much as 9% after its third-quarter results failed to generate fresh enthusiasm amid a broader AI-led sell-off in the U.S. stock market.
- JPMorgan's Market Intelligence wrote Tuesday that markets were uneasy about AI returns, while Meta and Microsoft capex plans plus Michael Burry's Monday bet intensified selling pressure amid correction warnings up to 20%.
- Valuation metrics revealed Palantir Technologies, an AI software firm, hovered around 240x forward P/E versus Nvidia's around 29, despite $1.18 billion in revenue, outperforming estimates.
- Index declines reflected heavy selling in AI leaders, with the Dow Jones Industrial Average falling 251.44 points, or 0.65%, to 47,085.24.
- Anthony Saglimbene of Ameriprise said valuations were beginning to get `really stretched` in recent months, while Asia Pacific markets were mostly set to fall Wednesday amid a `global risk off tone`.
15 Articles
15 Articles
Stocks slide as investors question tech valuations
Stocks fell Tuesday after Wall Street sounded the alarm about a market selloff amid growing concerns over inflated tech valuations. The CEOs of Goldman Sachs and Morgan Stanley warned the market is due for a slide as investors question the sustainability of the AI boom. Those concerns showed up in Palantir’s stock price Tuesday, which fell even after the software company increased its revenue forecast on the back of its growing AI business. “Bul…
Don't Panic, But AI Stocks Are Suddenly Lurching Downward
Investors are increasingly becoming concerned that AI companies may be grossly overvalued — and could struggle to justify their enormous hype by successfully ratcheting up profits. So it’s naturally alarming that shares of AI industry stalwarts, including Oracle, Nvidia, AMD, and Amazon, fell sharply on Tuesday, following concerns over enormous valuations that have propped up the entire US economy for months now. AI chipmaker Nvidia’s shares dip…
Wall Street is suddenly sounding the alarm on sky-high valuations as Palantir tumbles
Traders work on the floor of the New York Stock Exchange in New York City.Michael M. Santiago/Getty ImagesThe stock market tumbled on Tuesday, with a sell-off among AI leaders dragging indexes lower. Palantir stock dropped as much as 9% after Q3 earnings failed to generate fresh hype for the AI firm.Investors are starting to question the valuations of some tech giants and whether AI ambitions will deliver.The AI trade is taking a hit on Tuesday.…
Despite solid quarterly figures and AI hype, the Palantir stock is under pressure. "In the beginning it rose. And then all analysts came to mind: ‘Man, Palantir is quite expensive after all', says tech stock expert Alfred Maydorn in conversation with Dietmar Deffner.
Coverage Details
Bias Distribution
- 38% of the sources lean Left, 37% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
