Tonight's Highlights | AI Bubble Fears Heat Up, U.S. Stock Futures All Lower, Palantir Down 8% Pre-Market  

Tuesday, U.S. stock index futures fell, Nasdaq 100 futures down over 1%, as AI-related stocks like Palantir weakened amid growing investor concerns over AI sector valuations. With pessimism spreading, major European indices also dropped across the board.  

 

Thanks to AI business growth, data analytics firm Palantir posted another record quarterly revenue and gave strong guidance, but its shares still fell 8% pre-market.  

 

Palantir Q3 revenue $1.18 billion, up 63% YoY, beating analyst estimates of $1.09 billion. Company expects Q4 revenue $1.33 billion, above estimates of $1.19 billion.  

 

Deutsche Bank strategist Jim Reid wrote in a note: "Their results were good, but the market is disappointed with the lack of clarity on the company's outlook for all of 2026." He also mentioned concerns over Palantir's high valuation.  

 

At Monday's close, Palantir shares up 173% YTD, forward P/E over 200x. Investors expect the company and other AI stocks to keep sharply raising profit and revenue guidance to justify lofty valuations.  

 

Per FactSet, the AI-driven rally has pushed the S&P 500 forward P/E above 23x, near the highest since 2000.  

 

Investors also took cues from Goldman and Morgan Stanley CEOs. Both bank heads said markets could see a 10%+ pullback ahead.  

 

Other worries include the U.S. federal government shutdown. As of now, it's lasted 35 days—tying the historical record.  

 

Investors are also watching if the Fed will cut rates for a third straight time at the December meeting.  

 

Fed Governor Lisa Cook said Monday that December's rate decision will depend on the latest economic data and whether tariff impacts on inflation are easing.  

 

Two other Fed officials, Daly and Goolsbee, said they're assessing the slowing labor market against above-target inflation and keeping an open mind on December rates.  

Company News  

Norway Sovereign Wealth Fund to Oppose Musk's Tesla CEO Performance Pay Package  

 

Norway's sovereign wealth fund plans to vote against "awarding Musk Tesla stock as CEO performance pay" at the November 6 Tesla annual shareholder meeting.  

 

Norges Bank Investment Management (NBIM) said November 4 that while it recognizes the huge value from Musk's leadership, it has concerns over the total award size, equity dilution, and lack of mitigation for key-person risk. It will continue constructive dialogue with Tesla on this and other issues.  

 

Norway's sovereign wealth fund holds 1.12% of Tesla, worth about $17 billion—seventh-largest shareholder.  

 

Nvidia Partners with Deutsche Telekom on €1B Deal to Build AI Data Center  

 

November 4, Nvidia and Deutsche Telekom agreed to jointly build an AI computing center in Munich with up to 10,000 GPUs, total investment around €1 billion. Construction expected complete by end-Q1 2026.  

 

Uber Q3 Revenue $13.467B, Up 20% YoY  

 

Uber reported Q3 revenue $13.467 billion, up 20%; net income $6.626 billion, up 154%.  

 

Spotify Q3 Subscribers Up 12% to 281M  

 

November 4, music streaming platform Spotify reported Q3 subscribers up 12% to 281 million; monthly active users up 11% to 713 million; total revenue up 12% at constant currency to €4.3 billion; operating profit €582 million.  

 

Pfizer Q3 Revenue $16.65B  

 

Pfizer reported Q3 revenue $16.65 billion, adjusted EPS $0.87. Still forecasts full-year revenue $61-64 billion, adjusted EPS $3.00-3.15.  

 

Saudi Aramco Q3 Adjusted Net Profit $28B  

 

October 4, Saudi Aramco reported Q3 2025 adjusted net profit $28 billion, vs $27.7 billion year-ago; free cash flow $23.6 billion, vs $22 billion.