Palantir (PLTR) shares were down 6% during mid-morning market action on Tuesday following its latest earnings results, but so was most of the enterprise software sector.
Several analysts pointed to Palantir’s high valuation as the cause of the drop, as its revenue for the third quarter posted an astounding 63% year-over-year surge highlighted by dozens of $10M-plus deals. However, the stock price has already more than quadrupled over the past 12 months. In comparison, the iShares Expanded Tech-Software Sector ETF (IGV) has risen 23% during that time frame.
IBM (IBM) and Salesforce (CRM) were both down 1%. Oracle (ORCL), ServiceNow (NOW) and SAP (SAP) had all declined 1.6%. Microsoft (MSFT) had inched down 0.5%.
Atlassian (TEAM) had sunk 5.7%, monday.com (MNDY) had fallen 4.4% and Workday (WDAY) had slipped 1.5%.
Adobe (ADBE) was one of the few outliers in the sector, inching up 0.8%.
Cybersecurity software vendors also saw declines. CrowdStrike (CRWD) was down 1.3%, while Palo Alto Networks (PANW) and CyberArk (CYBR) had both slipped 1%. Fortinet (FTNT) had declined 1.8%.