The Negative Reaction After Palantir’s Earnings Spreads Across Volatile Retail Stocks
The downturn in Palantir shares has triggered a wider sell-off among volatile stocks favored by retail investors. Despite mostly positive earnings, Palantir’s decline is sending ripples through segments known for high momentum and speculative interest.
Market Impact and Related Losses
Bloom Energy, a fuel cell company, and Oklo, a pre-revenue nuclear startup, both dropped by around 5% or more in early trading. Meanwhile, cloud firms such as Nebius and CoreWeave are also under heavy selling pressure.
Quantum Sector Under Fire
The broader quantum computing space suffered notable losses, with several firms down between 3% and 5% as of 9:42 a.m. Eastern Time.
- D-Wave Quantum
- Rigetti Computing
- IonQ
- Quantum Computing Inc.
Other Affected “Story Stocks”
Additional retail favorites, including SoundHound AI, Rocket Lab, and Opendoor Technologies, are also deep in the red.
Broader Indices Reflect the Pressure
Goldman Sachs’ indexes tracking retail-favorite and unprofitable tech stocks fell over 2% and 3%, respectively, by 9:43 a.m. Eastern Time. The Invesco S&P 500 High Beta ETF was down more than 2% as well.
"The damage is not contained... Palantir is the poster child for a richly valued, retail darling, megacap momentum stock."
Author’s Summary
Palantir’s decline sparked a wave of selling across speculative tech and retail-driven stocks, highlighting the fragility of momentum-driven segments in the current market.