Palantir stock surged 40.3% in April, but dropped 6% in May post earnings.

From Nasdaq: 2025-05-07 07:15:00

In April, Palantir stock (NASDAQ: PLTR) surged 40.3%, outperforming the S&P 500 and Nasdaq Composite. The gains were driven by new contracts and partnerships. However, May saw a 6% pullback post Q1 earnings release, though the stock is still up 44% in 2025. Full-year revenue and cash flow targets were raised.

Despite market volatility due to new tariffs, Palantir stock remained strong in April. The company’s gains were supported by a new U.S. government contract and an expanded partnership with Alphabet. The company’s focus on data analytics and AI services helped shield it from trade war concerns.

Following its Q1 earnings report, Palantir stock dropped 6% in May. The company delivered strong results, with revenue up 39% YoY and adjusted net income up 70%. Palantir raised its full-year sales and FCF targets. However, the market reaction underscores the risks tied to its growth-dependent valuation.

The Motley Fool’s Stock Advisor team highlighted the 10 best stocks to buy, excluding Palantir. Their previous recommendations like Netflix and Nvidia have shown significant returns. Stock Advisor’s total average return is 894%, outperforming the S&P 500. Join Stock Advisor to access their latest top 10 list and potential investment opportunities.



Read more at Nasdaq: Why Palantir Stock Skyrocketed 40.3% Last Month but Is Sinking in May