Palantir’s shares dropped despite strong revenue results due to valuation concerns and bearish bets, while Hertz’s stock surged 25% after reporting a profitable quarter driven by fleet refresh and new used car sales on Amazon. Uber beat booking estimates but missed on operating income, with investors awaiting earnings from Lyft and DoorDash, and iHeartMedia shares jumped 30% on news of potential Netflix licensing talks for video podcasts.
Palantir (ticker PLTR) saw its shares drop as much as 8% despite topping analysts’ estimates for third-quarter sales and raising its annual revenue outlook. The company has reported revenue above estimates for 21 consecutive quarters, yet concerns about its valuation and the sustainability of the AI rally have weighed on investor sentiment. Hedge fund manager Michael Burry has taken bearish positions on Palantir, adding to the pressure. The stock has soared over 170% this year, closing at a record high, but its price-to-sales ratio of 85 is the highest in the S&P 500, leading some investors to seek more guidance on the company’s outlook for 2026.
Hertz (ticker HTZ) experienced a significant surge in its stock price, rising 25% after swinging to a third-quarter profit. The company benefited from lower depreciation costs as it continues to refresh its fleet by replacing older cars with newer models. Additionally, Hertz has been selling used cars on Amazon since August, creating a new revenue stream and boosting profitability. The company reported a net income of $184 million, or $0.42 per share, compared to a loss of $1.33 billion, or $4.34 per share, in the same quarter last year, marking a strong turnaround.
Uber (ticker UBER) posted earnings that beat estimates, with total bookings growing 21% to $49.7 billion for the quarter, marking its strongest growth since late 2023. However, the stock was down because the company missed on third-quarter operating income and issued an adjusted earnings forecast for the current period that fell short of expectations. Uber’s CEO attributed the operating income miss partly to undisclosed legal and regulatory matters. Despite the mixed results, Uber’s overall performance was positive, and investors are now awaiting earnings reports from competitors Lyft and DoorDash, which are scheduled to report soon.
Lyft and DoorDash are expected to release their earnings reports after the market close tomorrow, which will provide further insight into the ride-sharing and food delivery sectors. The discussion highlighted a preference for Uber over Lyft among some users, citing convenience and discount strategies. The upcoming reports from these companies will be closely watched to see how they are performing relative to Uber and to assess the competitive landscape in these industries.
Lastly, iHeartMedia (ticker IHR) shares surged as much as 30% following news that Netflix is in talks to license video podcasts distributed by iHeartMedia. This move would position Netflix in direct competition with YouTube in the video podcast space. Netflix has previously engaged in similar licensing deals with Spotify, and this potential partnership with iHeartMedia signals its continued expansion into new content formats, which investors have responded to very positively.