Palantir Technologies is navigating turbulent market waters as CEO Alex Karp embarks on a new stock trading plan. On Thursday, the company's stock price took a significant hit, sliding over 5% during the regular session and an additional nearly 2% in after-hours trading. This decline follows a 10% drop experienced on Wednesday, further contributing to investor concerns. Amidst these developments, Sylvia Jablonski, CEO of Defiance ETFs, views the dip in Palantir's stock price as a potential investment opportunity.
The broader market faced its own challenges on Thursday. The S&P 500 retreated by 0.43% from its recent all-time highs, while the Nasdaq Composite fell by 0.47%. Additionally, the Dow Jones Industrial Average shed 450.94 points, or 1.01%, during the regular session. These declines were partly attributed to fears that, according to Art Hogan, chief market strategist at B. Riley Wealth Management, may have been slightly overblown.
U.S. stock futures showed little change on Thursday night, indicating a cautious approach from investors. Hogan remarked, "I certainly think you'll get a sense tomorrow if investors feel like in the near term the moves today are overdone, especially if the PMIs and existing home sales are in line." Despite the day's market fluctuations, Hogan suggested that no specific piece of economic data might dramatically affect the situation, saying, "I don't think that there's going to be a piece of economic data that could necessarily stir things up."
Amidst Palantir's stock volatility, Sylvia Jablonski expressed confidence in the company's long-term potential. She noted that Karp's decision to diversify his holdings might have sparked the recent sell-off, stating, "I think the sale is just that he's overconcentrated in one stock that has made him incredibly wealthy and others incredibly wealthy, and they're diversifying." Jablonski believes that Palantir's recent pullback could provide a valuable opportunity for investors to capitalize on the company's future growth prospects.
In other corporate earnings news, Celsius Holdings reported robust fourth-quarter results with adjusted earnings of 14 cents per share on $332 million in revenue. These figures surpassed analysts' expectations of 11 cents per share and $326 million in revenue. Similarly, Block posted strong fourth-quarter adjusted earnings of 71 cents per share on $6.03 billion in revenue.
Meanwhile, geopolitical developments may also play a role in market dynamics. The Washington Post reported that Defense Secretary Pete Hegseth plans to reduce the U.S. defense budget. Given Palantir's status as a leading artificial intelligence defense firm, such budgetary changes could impact its operations and investor sentiment.