The Power Gauge Flashes a New Warning Over This AI Darling

The Power Gauge Flashes a New Warning Over This AI Darling

By Vic Lederman, publisher, Chaikin AnalyticsFew companies gained the type of attention in 2025 that Palantir Technologies (PLTR) did…

Palantir develops AI-powered software for a wide array of industries. The company has software to optimize supply chains, financial markets, and even combat.

Palantir’s stock was an AI darling last year. It soared by a staggering 135% in 2025 alone. That compares with a roughly 16% gain for the S&P 500 Index.

But it was hard to ignore Palantir’s nosebleed price-to-earnings (P/E) ratio…

The current ratio sits around 369 times. To be sure, that’s sky-high… But it went much higher in 2025. Palantir’s P/E ratio topped 600 last year.

Of course, the Power Gauge tracked Palantir’s soaring stock. Palantir spent most of 2025 with a “bullish” or better rating. And our system flashed numerous “buy” alerts as the share price climbed.

Regular readers will also recall that our firm’s founder, Marc Chaikin, shared how he identified a setup in Palantir for Smart Money Tradersubscribers at the beginning of last year.

As Marc noted, subscribers who followed his advice to buy PLTR shares booked a 52% gain in less than a month.

Folks, the Power Gauge is a powerful tool for identifying stocks primed to soar. But longtime readers also know that we can use it to find stocks that aren’t doing too well…

And the Power Gauge has been flashing some warning signs for Palantir’s stock…Recommended Links:

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Shifting AI Sentiment Drags Palantir Down

As I said, Palantir spent most of 2025 in “bullish” or better territory.

The stock boasted strong relative strength versus the S&P 500 until mid-November. And the “smart money” buying activity behind the stock rarely faltered.

Put simply, it seemed like Palantir was in a great position to keep growing.

You see, the company reported third-quarter earnings on November 3. Going into the release, the stock hit an all-time high of $207.18 per share. And the company beat earnings expectations by nearly 24%.

And yet, it has been a downhill ride for Palantir’s stock since then…

In the November 6 edition of the Chaikin PowerFeed, my colleague Ethan Goldman noted that the stock plunged by about 8% the day after the earnings release. As he said, investor fear over AI spending with no clear path to profit weighed on stocks riding the AI boom.

In the chart below, you can see how the tide has been shifting for Palantir’s stock…Palantir’s stock fell into “neutral” territory in the wake of the earnings report. Today, it still has a “neutral” rating.

Palantir’s relative strength has also been sliding in recent weeks. And so has its Chaikin Money Flow indicator – which tracks the smart-money activity on Wall Street.

And to make matters worse, the Power Gauge recently flashed its first “sell” alert for the stock in 12 months.

Put simply, the Power Gauge is flashing caution right now.

It’s signaling that the future of Palantir’s stock is far from certain… especially when the stock isn’t doing as well as it did for most of 2025.

If the stock continues to deteriorate, that could drop it into outright “bearish” territory. And that would be a big warning for more downside ahead. 

Good investing,

Vic Lederman

Market View

Major Indexes and Notable Sectors  # HLD:    BULLISH    NEUTRAL    BEARISHDow 30

-0.56%619 5S&P 500

+0.04%108269 123Nasdaq

+0.32%2354 29Small Caps

-1.85%641961 286Bonds

+0.27%

— According to the Chaikin Power Bar, Small Cap stocks are more Bullish than Large Cap stocks. Major indexes are mixed.*  *  *  *

Sector Tracker

Sector movement over the last 5 daysEnergy+3.15%Materials+2.65%Communication+1.55%Health Care+1.12%Consumer Staples+0.97%Consumer Discretionary+0.68%Information Technology-0.36%Industrials-1.61%Utilities-1.91%Real Estate-2.27%Financial-2.52%*  *  *  *

Industry Focus

Bank Services59403

Over the past 6 months, the Bank subsector (KBE) has underperformed the S&P 500 by -1.80%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #4 of 21subsectors and has moved up 1 slot over the past week.Top StocksratingABCBAmeris BancorpratingZIONZions BancorporationratingAUBAtlantic Union Banks*  *  *  *

Top Movers

GainersratingLYV+6.39%ratingFTNT+5.18%ratingSW+4.83%ratingGILD+3.65%ratingNOW+3.54%LosersratingINTC-17.03%ratingCOF-7.56%ratingMRNA-6.09%ratingSNDK-5.88%ratingWST-4.49%*  *  *  *

Earnings Report

Earnings SurprisesratingSLB 
SLB N.V. Q4 $0.78 Beat by $0.04ratingBAH 
Booz Allen Hamilton Holding Corporation Q3 $1.77 Beat by $0.50*  *  *  *

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Published by RJ Hamster

I was born on 6 August 1956 in San Francisco, California to Janet and (the late) Richard Hovis. I grew up in Santa Monica, California where I attended elementary, junior high school, and high school (graduating in 1974), in addition to involvement in sports and recreation (Little League +, the Boy’s Club ++). Further, it was in elementary school – St. Augustine’s By-the -Sea Parish School that I found, and made the choice to truly journey with God. I attended Arizona State University from 1974 to 1977 – seeking to become an architect, however, I was not accepted, and, as such, I graduated with a Liberal Arts degree. Upon graduation from Arizona State University, I attended Cal Poly San Luis Obispo and studied City and Regional Planning at the Master’s level. I successfully completed one (1) year in a two (2) year program – I did not complete the Master’s degree in City and Regional Planning – due to personal reasons. I returned to Santa Monica where I started (October 1979) my career as graphic designer with Exxon Company, USA. I spent five years with Exxon Company, USA. While working with Exxon Company, USA I was accepted into architectural school – Sci-Arc in Southern California, however, I did not attend preferring to stay with Exxon.. In 1982 I married Laura Flosi and in April 1983 we had our one and only child – Lauren Alain Hovis – a gift from God. We moved to Phoenix, Arizona in 1984 from Los Angeles, where I went to work as a graphic designer with Kitchell CEM (from 1985 -1987). From 1987 – 1995 I was an independent contractor, and a registered representative in mortgage finance, financial management, graphic design, and drafting. Further, I attended the University of Phoenix and successfully obtained a Master’s in Business Administration (MBA) in 1982. I was also a member of the Scottsdale Jaycees, where I became very involved in community events and projects. In 1994, I accepted a cartography position with the Defense Mapping Agency in Reston, Virginia. As such, I relocated from Phoenix to Reston. In 1998, I was accepted and worked as a Visual Information Officer with the Central Intelligence Agency. In 2002, I worked as a Support Officer until my retirement (due to a need for shoulder surgery) in September 2018. Away from my Federal Government service, I have been involved in various organizations and activities in Northern Virginia. In November of 2011, I married Rebecca Ouellette in Santa Monica, California. I reside in San Tan Valley, AZ with my two hamster - Jess and Timothy, our fish, our lizard - RJ Lizard., and our cats - Pearl and Grey. As to hobbies, I enjoy playing sports, attending sporting events, mentoring individuals from financial management to hamsters, building models, photography, travel, multimedia design, managing partner for RJ Hamster, and jazz – smooth jazz to a samba or a bossa nova. Love and God Bless, Peter – aka RJ Hamster Jo hi

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