Palantir (PLTR) stock closed at $122.05 on July 30 as investors prepared for the company’s August 3 earnings report. The software company will release its second-quarter results after the market closes.
PLTR now trades near its 52-week low after falling about 40% from its December record. The wider sell-off in enterprise software shares has added pressure, despite Palantir beating earnings estimates for eight straight quarters.
Palantir shares have fallen about 14% since the company reported its May results. During the same period, the S&P 500 gained, showing that PLTR has underperformed the wider market.
Palantir Technologies Inc., PLTR
High valuation levels remain one reason for the decline. Palantir trades at about 130 to 150 times trailing earnings. Its price-to-sales ratio also stands near 60, leaving little room for weaker growth or cautious guidance.
Enterprise software companies have also faced selling pressure. New application tools and model updates from OpenAI and Anthropic have raised questions about future software demand and competition.
IBM recently suffered its worst trading session since 1987 after reporting softer software demand. ServiceNow shares also declined despite beating estimates because its results failed to clear a high market bar.
Analysts expect Palantir to report second-quarter revenue of about $1.8 billion. Adjusted earnings are projected at $0.35 per share when the company publishes its results on August 3.
Prediction-market traders see a strong chance that Palantir will beat the revenue and earnings forecasts. However, the stock may require a wider beat and stronger full-year guidance because investors already expect solid results.
Palantir has exceeded analyst forecasts for eight consecutive quarters. That record has raised expectations and reduced the value of a small earnings beat.
Recent insider sales between $130 and $137 have also drawn attention. Investors are also assessing reports about a French national security contract involving local technology provider ChapsVision.
Free cash flow could become the main figure in the upcoming earnings release. Palantir reported $925 million in free cash flow during the first quarter, representing a 150% increase from the previous year.
The company raised its full-year free cash flow guidance to between $4.2 billion and $4.4 billion. Chief Executive Alex Karp has projected between $15 billion and $18 billion over the next two years.
A second-quarter figure above $1 billion, paired with higher guidance, could support that outlook. A result below $850 million could point to slower cash generation.
PLTR is forming a symmetrical triangle near the $122 pivot. The price remains below the 50-day exponential moving average at $126.80 and the 200-day exponential moving average at $130.70.
Resistance stands at $126.80, $131.40 and $137.40. Support sits at $120.60, $114.70 and $106.60.
Source: TradingView
A break above $126.80 could open a move toward $131.40 and $137.40. A drop below $120.60 could expose $114.70 and $106.60.
Options pricing suggests an earnings move of about 15%. From $122, that range places PLTR between roughly $104 and $140 after the report.
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