Cathie Wood, everyone’s favorite stock market mama, has done it again. She just offloaded 227,699 shares of Palantir Technologies (PLTR) ahead of the company’s Q3 earnings report. And if you’re wondering why she’d bail on one of the hottest AI stocks this year (not to mention one of the most ravenous fanbases on reddit) you’re not alone. 

But that’s classic Cathie for you—her investing moves are about as predictable and awkward as the local weather channel. So, with Wall Street analysts taking a bearish stance on Palantir’s future, let’s take a minute to dig into what we should brace ourselves for when those Q3 numbers drop after the bell.

Palantir’s had a headline-grabbing year, with its stock more than doubling on demand for its Artificial Intelligence Platform (AIP). This year, it’s become the AI “it” stock, gathering investor enthusiasm like a snowball gathering speed in Aspen, Colorado. But here’s the thing: Wall Street analysts (like 21 Pilots) aren’t convinced that the hype can last. 

Of the 12 analysts tracked by Visible Alpha, only two have a positive outlook for Palantir, while the rest are less than enthusiastic. Their average price target of $27.55 suggests they’re expecting for a 34% slide from Palantir’s recent high of $41.92. (Might want to start putting those “diamond hands” to the test, PLTR fans.)

For Q3, analysts are looking for revenue of around $704.9 million—a 26% year-over-year jump—and earnings per share of $0.05, up from $0.03 a year ago. Not bad, right? But here’s the problem: even with these gains, Palantir’s valuation is Snoop Dog high, and that’s got analysts pulling out their calculators and shaking their heads. If Palantir doesn’t wow the market, we could see that price tank.

In Q2, the company pulled off a 27% revenue spike and raised its full-year guidance, sending shares soaring. But analysts are now questioning whether Palantir can keep up the momentum, especially when growth across the tech sector seems to be hitting a standstill. The word on Wall Street is that Palantir’s valuation might just be “overcooked,” and unless the company brings something impressive to the earnings call, a lot of investors might decide it’s time to cash out (if you check Palantir’s reddit, there’s a lot of superfans doing just that).

So, what does Cathie’s big sell-off mean? Well, it’s no secret that her ARK funds are in constant motion, accumulating what’s hot and selling what feels lukewarm. This recent sale was worth over $9 million, and it follows a string of divestments from Palantir over the past week. It’s not necessarily a death sentence for PLTR, but it’s certainly got people talking. 

For context, ARK also trimmed Tesla, while doubling down on other AI plays like Tempus AI, so maybe Cathie’s just hedging her bets on which AI stocks will be the last ones standing? As Kanye once famously said, “I guess we’ll never know.”

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