pltr: AI Reality Check and Investor Sentiment

Hims & Hers: Personalized Hype or Real Growth?

After-hours trading is always a bit of a circus, isn't it? Everyone scrambling to react to the quarterly reports. This time around, Hims & Hers Health caught my eye – shares jumping over 6% on revenue that beat expectations, but earnings that didn't. A classic case of Wall Street getting blinded by shiny objects.

Let's break it down. Revenue came in at $599 million, exceeding the $580 million consensus. Solid. But earnings? A measly 6 cents per share, a far cry from the expected 10 cents. Subscriber growth is being touted as the magic bullet, fueling this revenue surge. And the "personalized" treatments? That's the hook, line, and sinker right there.

But here's where the data analyst in me starts twitching. What exactly constitutes "personalized" in this context? Is it truly innovative medicine, or just clever marketing preying on the desire for tailored solutions? The company's press releases are heavy on buzzwords and light on specifics. I've seen this playbook before.

Palantir's Government Goldmine

Palantir is another interesting case. A 1% bump after hours might seem underwhelming, but consider the context. The company beat estimates, earning 21 cents per share (adjusted) on $1.18 billion in revenue. Analysts were expecting 17 cents on $1.09 billion. The real kicker? Government sales are up 52% year-over-year. According to Stocks making the biggest moves after hours: Palantir, Hims & Hers Health, Clorox and more, Palantir was one of the stocks making the biggest moves after hours.

That's not just growth; that's a strategic shift. Palantir's AI platform is clearly resonating with government agencies, and that's where the long-term money is. Commercial business is ramping up too, driven by the same AI platform. It's a double-edged sword, though. Increased reliance on government contracts means increased scrutiny and potential political headwinds.

Diamondback Energy’s decision to sell Viper Energy’s non-Permian assets for $670 million (transaction closing Q1 2026) seems disconnected from their earnings beat ($3.08 adjusted profit vs. $2.93 expected). Why shed assets after exceeding expectations? Is this a strategic realignment, or a sign of future concerns not immediately apparent in the Q3 numbers?

Clorox, on the other hand, saw shares rise over 4% after posting adjusted earnings of 85 cents per share on $1.43 billion in revenue, beating estimates of 79 cents and $1.40 billion, respectively. Reaffirming full-year guidance suggests stability, but let’s be real: we’re talking about cleaning products. How much more can they really grow?

IAC's stock tanked – down over 7% – because AI search summaries are cannibalizing their website traffic. Revenue fell 8% to $589.8 million, missing the $601.6 million estimate. They also lowered their 2025 adjusted EBITDA estimate. The market is reacting to a fundamental shift in how people access information. News aggregators are becoming less valuable, and that’s bad news for IAC.

Lattice Semiconductor's stock fell nearly 6% despite beating third-quarter earnings estimates (28 cents per share adjusted on $133.3 million revenue). The problem? Their forecast was disappointing – they expect fourth-quarter revenue growth of 22%, while adjusted earnings per share should be in the range of 30 cents to 34 cents per share, after adjustments. Both estimates were below the analyst consensus. This tells me that the market is pricing in future growth, not current performance.

The Williams Companies' stock moved lower by 3% on disappointing third-quarter results. They posted adjusted earnings per share of 49 cents, falling short of the 51 cents per share expected by analysts. Revenue beat estimates, but the market clearly cares more about profitability.

Upwork saw shares jump nearly 14% after raising its 2025 revenue forecast on the back of strong third-quarter results. They earned 36 cents per share (non-GAAP) on revenue of $201.7 million. For the fourth quarter, Upwork expects revenue of between $193 million and $198 million, while profit should be between 31 cents and 33 cents per share after adjustments. The market clearly believes in the future of the freelance economy, and Upwork is positioned to capitalize on that trend.

Vertex Pharmaceuticals saw its stock lose 4% after it reported mixed third-quarter results. Vertex earned $4.80 per share, excluding items, on revenue of $3.08 billion. Although the company's profit came out lower than the $4.58 per share estimate from analysts surveyed by FactSet, revenue beat the $3.06 billion forecast.

The Signal-to-Noise Ratio is Way Off

So, what's the real takeaway here? After-hours trading is a volatile beast, driven by emotion as much as data. Some companies, like Palantir, are showing genuine strategic shifts. Others, like Hims & Hers, are riding the hype train. As always, the devil is in the details – and the marketing materials.