Palantir Technologies ( PLTR ) shares dropped over 4% overnight on the Robinhood platform, ahead of its fourth-quarter earnings report on Monday. This decline came after a sharp drop in index futures, triggered by President Donald Trump‘s decision to impose tariffs on Canada, China, and Mexico over the weekend.

What Happened: After hitting a record high of $85.22 intraday, Palantir ( PLTR ) stock settled at $82.49, up 1.56% on Friday. It rose further by 0.09% in after-hours. On Robinhood, the stock was trading 4.16% lower during the publication of this article.

A leader in AI-powered data analytics, Palantir ( PLTR ) provides critical tools to government clients for intelligence, counterterrorism, and military applications.

However, despite the Chinese AI startup, DeepSeek-led frenzy in the U.S. market last week, the shares of PLTR gained 11.68% in the last five trading sessions. It was also the top performer on the S&P 500 index in 2024.

Technical analysis of its daily moving averages shows a strong bullish trend for the stock with potential overbought conditions.

PLTR shares closed Friday at $82.49, significantly above its eight-day simple moving average of $79.25, and 20-day average at $74.18. Also, much above its 50 and 200-day averages of $72.66, and $41.72, respectively, according to Benzinga Pro. The relative strength index of 63.91, even though in the neutral zone, suggests the possibility of price correction in the near future.

See Also: After Imposing Tariffs On Canada, Donald Trump Threatens 100% Levy On BRICS For Move Against Dollar: ‘How Will US Manage Production From Slippers To Ships?,’ Asks Expert

Why It Matters: PLTR will report its fourth-quarter earnings after market hours on Monday. According to Benzinga’s consensus estimates, the company is expected to report earnings of $0.11 per share on the revenue of $775.91 million.

The company has exceeded Benzinga’s earnings and revenue estimates in seven out of the last 10 quarters.

Palantir ( PLTR ) CEO Alex Karp recently warned of DeepSeek’s competitive challenge in AI, calling for a coordinated U.S. response to safeguard its technological edge in an interview with CNBC.

New tariffs, effective Tuesday, will impact roughly a third of U.S. imports, potentially raising prices across sectors from agriculture to automobiles. The U.S. Chamber of Commerce has warned of supply chain disruptions and higher costs for families, citing concerns about agricultural imports from Mexico worth $46 billion and energy trade with Canada valued at $97 billion. Additionally, a 10% tariff will be levied on Chinese goods imported into the United States.

PLTR has a consensus ‘sell’ with a price target of $39.38, according to the 22 analysts tracked by Benzinga. The high target is $90, and the low is $7.5. Recent ratings by Wedbush, Cantor Fitzgerald, and Morgan Stanley suggest a $74 target, implying a 10.37% upside.

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