Palantir Stock Plunges Despite Earnings Beat; Yum! Brands Climbs

An artificial intelligence software powerhouse came under pressure despite a strong earnings report, while shares of a fast-food company rose after it posted strong quarterly results and said it might offload its underperforming pizza chain.

Major U.S. equities indexes dropped Tuesday as investors reacted to the latest installment of earnings reports and fretted over equity valuations. The S&P 500 fell 1.2%, while the Dow lost 0.5%. Technology was the weakest-performing sector in the benchmark index; that also weighed on the Nasdaq, which ended 2% lower. Investopedia’s full daily market roundup is available is available here. 

Despite a strong earnings report, shares of data analytics software giant Palantir Technologies (PLTR) tumbled 8%. The company posted better-than-expected sales and profits for the third quarter and raised its full-year revenue forecast, highlighting strong demand. However, some analysts have expressed concerns about the valuation of the AI darling’s stock following its meteoric rise, and a regulatory filing revealed Monday that “Big Short” investor Michael Burry had taken a bearish position in Palantir.

Shares of Norwegian Cruise Line Holdings (NCLH) sank 15%, falling the most of any stock in the S&P 500, after the cruise operator reported mixed third-quarter results. While adjusted profit surpassed forecasts, revenue for the period came in below expectations. The cruiser said tariff-related uncertainty and the government shutdown were weighing on demand, while lower participation in its air program, which helps passengers coordinate flights to match their cruise itineraries, also affected revenue. Shares of competitors Carnival (CCL) and Royal Caribbean (RCL) also fell.

Uber Technologies (UBER) shares skidded 5% after the ride-sharing and food delivery firm reported lower-than-expected operating profit for the third quarter. Although revenue came in ahead of expectations, boosted by contributions from Uber’s membership program, the company noted that regulatory and legal challenges weighed on profitability. 

Henry Schein (HSIC), a distributor of medical and dental equipment, exceeded estimates with its third-quarter revenue and adjusted profit, and its shares surged 11%. The company pointed to market share gains in its distribution business, raised its full-year adjusted profit forecast, and announced a cost-savings plan that included automation initiatives and boosting sales of its own branded products.

Shares of Expeditors International of Washington (EXPD) jumped 11% after the logistics company surpassed top- and bottom-line estimates for the third quarter. Strength in the company’s air-freight business helped offset softness in the ocean-freight market.

Specialty chemicals company DuPont de Nemours (DD) completed the spinoff of its electronics business into the independent company Qnity Electronics (Q). DuPont stock jumped 8.9%, while Qnity shares gained 4.2% on their first day of trading. Qnity is now an S&P 500 component; DuPont remains one after the spinoff.

Fast-food giant Yum! Brands (YUM) beat quarterly sales and profit estimates, highlighting strong demand from Taco Bell, and its shares jumped 7.3%. The company also said that it was evaluating strategic options for its Pizza Hut business, which has faced headwinds in recent years.