Source: Fortune
Summary
Global stocks are rallying after Palantir’s strong earnings report and a surprisingly optimistic poll of manufacturers. Palantir’s stock rose 10.86% in overnight trading, and other major tech companies like Apple, Alphabet, and Amazon also saw gains. The Nasdaq 100 futures rose 0.41%, and the S&P 500 futures were up 0.14%. The Institute for Supply Management’s manufacturing index showed a sharp increase in optimism among factory purchasing executives, boosting non-tech stocks.
Our Reading
The numbers tell one story. Palantir’s earnings blew through analysts’ expectations, but some on Wall Street think this level of growth might be unsustainable. The company’s customer growth decelerated to 5% in Q4, compared to 7% in Q3 and 10% in Q2. Meanwhile, the Institute for Supply Management’s manufacturing index showed a surprising increase in optimism, but some analysts warn that next month’s numbers might see a reversal to the norm. The rally is driven by spending on AI and optimism among manufacturers, but concerns about trade policy and tariffs continue to contribute to negative assessments.
Palantir’s growth is a bubble that won’t pop yet.
Author: Evan Null
