Shares in Palantir (PLTR) slid 9.3% in pre-market trading on Tuesday morning, following the release of the data analytics software company's first quarter results.
While overall revenue of $884m (£664m) beat expectations of $863m, earnings per share of $0.13 were in line with estimates.
US commercial revenue jumped 71% in the first quarter to $255m, versus estimates of $239m projected by Wall Street analysts tracked by Bloomberg. Palantir (PLTR) now expects its commercial business to grow by 68% this year, generating $1.18bn in revenue in 2025, up from a previous estimate of $1.08bn.
The company also raised its overall revenue forecast for 2025 to a range of $3.89bn to $3.9bn, compared with a previous estimate of $3.75bn.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Palantir (PLTR) delivered a knockout quarter by most standards, but shares are still down over 9% in after-hours trading – a clear example of the challenges that come with being priced for perfection."
"Two stories are playing out at once: one is a thriving business at the centre of the AI [artificial intelligence] revolution; the other is a sky-high valuation that demands extraordinary earnings growth to make sense," he said. "The business is clearly booming, and continued momentum in the commercial space is crucial to proving it's more than just a government defence contractor – at some point though, the valuation has to matter."
Carmaker Ford (F) warned in its first quarter results, released on Monday, that it expected to take a $1.5bn hit to operating profits this year due to US president Donald Trump's tariffs.
Ford (F) also withdrew its financial guidance for the year, citing tariff-related uncertainty.
In the first quarter, revenue of $40.7bn was down 5% on the same period last year, but was still ahead of forecasts of $38.02bn, according to estimates of analysts surveyed by FactSet.
Net income fell to $471m in the first quarter, down from $1.3bn last year.
Ford (F) CEO Jim Farley said in an earnings call with analysts on Monday that it was "too early to gauge the related market dynamics [from tariffs], including the potential industrywide supply chain disruptions."
"Automakers with the largest US footprint will have a big advantage, and, boy, that is that true for Ford," he said. "It puts us in the pole position."
Shares in Skechers (SKX) jumped more than 24% in Monday's session, after the footwear brand announced that it had agreed to be acquired by 3G Capital, in a $9.4bn deal that would take the shoemaker private.
Palina Kozyrava wears sneakers from Skechers in Basel, Switzerland. The footwear company announced that it is to go private in a $9.4bn deal. ·Jeremy Moeller via Getty Images
Skechers (SKX) said in a statement on Monday that the transaction is expected to close in the third quarter of 2025 and would continue to be led by CEO Robert Greenberg.
"Over the last three decades, Skechers (SKX) has experienced tremendous growth," said Greenberg, adding that he believed the partnership with 3G Capital would enable the company's "long-term growth".
"DoorDash (DASH) just raised the stakes in the food delivery wars with £2.9bn bid for Deliveroo (ROO.L), aiming to squeeze out Just Eat (TKWY.AS) and rattle Uber (UBER) in the UK," said Hargreaves Lansdown's Britzman.
"The deal, expected to close later this year, could turn the UK market into a fierce two-horse race with DoorDash (DASH) and Uber (UBER) at the top, as Just Eat looks a likely target for both to grab share from – and give DoorDash (DASH) a launchpad into the Middle East and beyond.
"With no competing bid in sight, this looks like a bold, calculated move to outpace global rivals and gain ground fast," he added.
Shares in oil major BP (BP.L) were up nearly 1% on Tuesday, in the first day of trading after the UK bank holiday, following a report over the weekend that rival Shell (SHEL.L) was weighing up whether to make a takeover bid for the company.
Bloomberg reported on Saturday that Shell (SHEL.L) was working with advisers to study the merits of a potential acquisition of BP. (BP)
Spokespeople for Shell (SHEL.L) and BP (BP) had not responded to Yahoo Finance UK's request for comment at the time of writing.
Russ Mould, investment director at AJ Bell (AJB.L), said: "A weaker economic backdrop thanks to Trump’s tariffs has clouded the outlook for oil and gas prices and that makes it even more likely we’ll see more industry consolidation. When times get hard, companies often seek economies of scale and cost synergies through mergers and takeovers."
“Anyone buying BP (BP) – whether that is Shell (SHEL.L) or another peer – would need to prepare themselves for a potentially complex deal," he added.
"On paper, you would think parking together two companies in the same sector would be easy; in reality, this could take a long time to execute and integrate. Shell (SHEL.L) has already been through this hassle once before, when it acquired BG (BG) for £47bn in 2015. That acquisition has turned out to be a good one, but most 'transformational' deals destroy, not create value."
