Palantir Technologies beat Wall Street expectations for Q3 earnings and raised Q4 guidance to $1.33 billion, but shares tumbled 7% in extended trading despite the strong performance. CEO Alex Karp used the earnings call to dismiss critics with "enjoy, get some popcorn, they're crying," while Pizza Hut's parent company explores strategic options including a potential sale.
The earnings season just delivered another AI success story with a twist of CEO swagger. Palantir Technologies crushed Wall Street's Q3 expectations yesterday, posting stronger-than-expected revenue and profits while raising its Q4 guidance to $1.33 billion - well above the $1.19 billion analysts were expecting according to LSEG data.
But here's where it gets interesting: despite the beat, Palantir shares dropped more than 7% in extended trading. The data analytics company, which provides tools to government agencies and corporations, has seen its stock surge 170% this year alone and rise 25-fold over the past three years. That kind of run-up means even good news needs to be exceptional news.
CEO Alex Karp wasn't having any of the post-earnings skepticism. During the earnings call, he took direct aim at critics with a memorable quip: "Enjoy, get some popcorn, they're crying," according to CNBC's coverage. Karp also touched on the company's controversial work with U.S. Immigration and Customs Enforcement and discussed fentanyl overdoses, showing his typical willingness to wade into politically charged territory.
The company credited much of its strong performance to artificial intelligence demand, positioning itself as a key beneficiary of the AI boom that's reshaping enterprise software. However, Palantir faces potential headwinds from the ongoing government shutdown, which could impact some of its federal contracts.
Meanwhile, the broader tech sector saw mixed action. Amazon hit a record high after announcing a massive $38 billion cloud deal with OpenAI, sending shares up 14% over just two sessions. But Uber dropped 4% in premarket trading despite beating Q3 revenue expectations.
In the restaurant world, Pizza Hut's parent company Yum Brands just dropped a bombshell. The company announced it's exploring strategic options for the struggling pizza chain, code for "we might sell it." CEO Chris Turner didn't mince words in a statement: "Pizza Hut's performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands."
