BUZZ - Market Watch: Palantir's AI business remains solid, but order status remains a concern

November 3 - ** Palantir Technologies (PLTR.O) forecasted fourth-quarter revenue above analysts' expectations after beating third-quarter results, thanks to strong demand for its data analytics software from government and commercial clients.

** The stock fell 6.16% in pre-market trading, at $167.36.

Durability testing begins

** Jefferies (maintains "Underperform" rating, target price: $80) stated that the market's focus is increasingly shifting to whether the company can sustain strong growth momentum during its scaling process, rather than concerns about the strength of fundamental demand.

** Raymond James (rated as "Market Perform") pointed out that robust customer spending and rising per-customer revenue are encouraging, but the timing of order volume recovery is still uncertain, and larger, longer-term contracts are seen as key to measuring the company's future growth prospects.

** JPMorgan ("Overweight", target price: $262) said that short-term dealings with Sovereign AI put pressure on some contract metrics, but strong customer spending and expanding contract sizes give it confidence in PLTR's long-term growth outlook.

** RBC Capital Markets ("Underperform", target price: $130) said that although the company expects contract size and duration to increase over time, they will continue to closely monitor short-term Sovereign AI contracts, viewing them as an indicator of future revenue sustainability.

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