Apple and Palantir shares drop in premarket trading following earnings reports
Apple and Palantir shares fell in Tuesday's premarket session after both companies reported quarterly earnings. Investors expressed caution regarding Apple's margins and supply chain constraints.
Shares of Apple and Palantir declined in Tuesday's premarket trading following the release of their respective quarterly earnings after Monday's market close. Apple shares were down 4.4%, while Palantir shares retreated 6%.
Apple’s results were the first reported under the leadership of new CEO John Ternus. While the company exceeded overall revenue expectations, it missed estimates for iPad sales. Management cautioned that rising memory costs and investments in AI infrastructure are exerting pressure on profit margins. Analysts noted that the company is currently navigating significant supply chain headwinds, which are expected to constrain the availability of Mac and iPad hardware.
Palantir outperformed Wall Street’s third-quarter estimates, marking a notable shift as U.S. commercial revenue surpassed government contract revenue for the first time. Despite the operational growth, both companies are facing investor skepticism. Market analysts suggest that given the 25% year-to-date climb in Apple’s share price, the current valuation leaves little room for earnings disappointments.