However, compared to the second quarter, the noticeable slowdown in business bookings has shaken investors' views on this stock. The company reported that business bookings increased by 11% year-on-year, whereas in the previous quarter, bookings grew by 153%.

Trade Nation Senior Market Analyst David Morrison stated: "The analysts attribute this sell-off to the slowdown in the growth of U.S. business bookings, which has pushed the stock down to around the support level of $165. All these indicate that some form of vulnerability is spreading among transactions related to AI."

Other tech giants have already deeply experienced this. Ultra-large-scale cloud service providers and other AI builders are facing strict scrutiny regarding capital expenditures, among other issues, and these factors may overshadow other highlights in their financial reports.

In recent weeks, the trading of tech stocks has also been weakening overall. Volatility in Asian markets such as China, Japan, and South Korea has intensified market concerns that the AI bubble may be about to burst.

InvestorPlace, the Chief Technology Analyst, pointed out that although his team remains optimistic about Palantir, the company not only needs to prove that it is operating well but also must continuously provide reasons for its high premium valuation.

Lango indicates: “Palantir looks very impressive from a distance, but the view through the windshield becomes somewhat blurred when the booking volume drops significantly from its record levels of the previous quarter. For most stocks, this is just a footnote; however, for a stock that is perfectly priced, this is exactly the headline that the bears have been waiting for.”

Some also emphasize that intensified competition may pose a threat, especially as the cost of computing power continues to rise.

Bloomberg Industry Research analyst William Tong pointed out: "The growth in the number of new commercial customers Palantir has slowed down month-on-month, to the slowest rate since the third quarter of 2024, indicating that competition from leading model providers is intensifying. The gross margin decreased by about 100 basis points in the third quarter, suggesting that higher computing power demands may still pose a challenge in the short term as inference-intensive workloads expand."

However, bulls still focus on the strong growth prospects of Palantir. UBS analyst Karl Keirstead stated that the company's 96% revenue growth is sufficient to offset any negative factors in this financial report, and reiterated the "buy" rating for the stock.

Keirstead writes: 'The only real flaw in this financial report is that RPO/backlog orders remained flat month-on-month – this is the first time such a situation has occurred since the first quarter of 2023. Palantir attributes this mainly to the shortening of contract terms.'