Morgan Stanley maintains Palantir Technologies at Equal-Weight, raises price target to $233 from $205

Apple (AAPL) and Palantir (PLTR) fell despite earnings beats. Apple cited shrinking margins due to memory-chip costs. Palantir's decline was isolated. Investors focus on stock-specific moves and valuation. Chip stocks rose on higher memory prices. Nasdaq and SMH ETF saw volatility. PulteGroup (PHM) gained on lower Treasury yields. Market awaits election results for direction.

Palantir (PLTR) shares dropped 8% premarket Tuesday, impacting ETFs with significant PLTR exposure, despite strong Q3 results and raised FY outlook.

Morgan Stanley raised its price target for Palantir (PLTR) to $233 after Q3 results beat estimates, with revenue up 96% YoY to $2.31B. Adjusted profits were $0.44 per share, above consensus. The firm increased its revenue growth forecast for 2027 to 65% from 45%.

Baird reiterated an Outperform rating and $250 price target for Palantir (PLTR) after Q3 results. Revenue grew 96% YoY, driven by U.S. commercial and government segments. The company raised full-year revenue growth guidance to 91%. Analysts noted strong performance, with varied price target adjustments. PLTR shares fell after-hours despite beating estimates.

Palantir Technologies reported Q3 2026 revenue of $2.31B, up 95.9% YoY, with net income rising 137.2% to $1.13B and EPS increasing to $0.44. Commercial and government revenue grew 113% and 81% respectively. The company's customer base expanded to 1,090, with top 20 customers contributing 76% more revenue.

US stock futures were mixed on Tuesday, with Apple down 4.5% after warning of rising memory chip costs. Palantir's shares fell 6.3% despite strong revenue forecasts. The Nasdaq-100 entered a correction. Nvidia, AMD, and Intel saw gains. Midterm elections and geopolitical tensions are key market factors.