Palantir’s numbers are working. For the first time, the story is not.
📉 Retail investors dumped $82M in Palantir, favoring surging semiconductor stocks instead.
💸 Stock dropped 20% YTD amid high valuation fears despite record revenue growth.
🔒 Germany excluded Palantir from defence clouds over data sovereignty and security risks.
📉 Retail investors dumped $82 million of Palantir shares in the week through May 13, rotating funds from AI software into semiconductor and memory stocks which have seen massive gains.
💸 Despite Q1 revenue surging 85% year-over-year to $1.63 billion, the stock remains down roughly 20% year-to-date due to a valuation perceived as too high at approximately 42 times implied 2026 sales.
🔒 Germany’s military formally excluded Palantir from its defence cloud procurement process, with officials citing concerns over data sovereignty and the vulnerability of relying on an American private company for national security data.
🇩🇪 The German Bundeswehr has shortlisted three European alternatives—Almato, Orcrist, and ChapsVision—with the digital intelligence service BfV having already selected ChapsVision.
✈️ CEO Alex Karp criticized Germany’s exclusion of Palantir as comparable to “conversations about witchcraft,” arguing that his technology has been proven effective in combat zones like Ukraine.
🤝 Palantir’s full-year guidance was raised to $7.1 billion, implying 71% annual growth, driven largely by a 104% surge in US revenue and a 133% increase in US commercial revenue.
⚠️ Prominent investors including Michael Burry have been bearish on Palantir’s valuation, with short seller Andrew Left calling the current pricing “absurd.”
🗓️ The German military evaluation of its domestic candidates is expected to conclude this summer, with a final contract award anticipated by the end of the year.
🗺️ In contrast to Europe, Ukraine utilizes Palantir’s products as an “operating system for war,” tracking battlefield outcomes by square kilometre under the management of President Zelenskiy.
🌍 The geopolitical rejection highlights a broader European concern regarding data sovereignty and the structural risk of depending on American tech providers in a strained transatlantic relationship.
- Q1 revenue surged 85% YoY to $1.63 billion.
- US revenue grew explosively by 104% year over year.
- US commercial revenue climbed a substantial 133% YoY.
- Full-year guidance raised to $7.65 billion with 71% growth.
- Proven battlefield value in Ukraine validates platform utility.
- Retail investors dumped $82M in Palantir shares through May 13.
- Stock price declined 20% YTD despite robust Q1 revenue.
- Germany's Bundeswehr excluded Palantir from defence cloud procurement.
- German intelligence chose ChapsVision over European alternatives including Almato.
- Analysts criticize 42x valuation as absurd and unjustified.
- Palantir's Q1 revenue surged to $1.63 billion, representing an impressive 85% year-over-year growth.
- US revenue experienced explosive growth, increasing by 104% year over year.
- US commercial revenue climbed a substantial 133% year over year, indicating strong market adoption.
- The company has raised its full-year guidance to $7.65 billion, projecting sustained 71% annual growth.
- CEO Alex Karp highlighted Palantir's proven track record in Ukraine, describing the platform as an 'operating system for war' that has demonstrated value more convincingly than any sales pitch.
- Around the world, serious battlefield operators have adopted the technology, validating its utility beyond theoretical PowerPoint presentations.
- The company's leadership continues to advocate for Palantir's indispensability, positioning it against European alternatives like Almato and Orcrist by emphasizing its real-world combat validation.
- Despite retail investor rotation, the fundamental business metrics show Palantir is delivering exceptional growth that would be the envy of most software companies.
- Retail investors dumped $82 million in Palantir shares during the week through May 13 as capital rotated into semiconductor and memory stocks.
- Palantir's stock price has declined approximately 20% year to date, dropping significantly despite reporting robust Q1 revenue of $1.63 billion.
- The company faces a major geopolitical risk as Germany's military (Bundeswehr) has formally excluded Palantir from its defence cloud procurement, citing data sovereignty concerns.
- Palantir is explicitly excluded from competing against three shortlisted European alternatives: Almato, Orcrist, and ChapsVision, with the German domestic intelligence service already choosing ChapsVision.
- Analysts including Michael Burry and Andrew Left have criticized Palantir's valuation of roughly 42 times implied 2026 sales as absurd and unjustified.
- The German government stated that Berlin wants a European alternative to avoid creating vulnerabilities through dependence on an American provider, especially given strained transatlantic relations.
- The evaluation of military candidates is expected this summer with a contract award by the end of the year, solidifying Palantir's exclusion from a key European defence infrastructure project.