Core Points

• Apple and Palantir both saw declines in their stock prices during the pre-market trading session on Tuesday.
• This iPhone manufacturer is facing a global shortage of memory chips, with intensified competition for computer components.
• Palantir's stock price has fallen due to a slowdown in the growth rate of the total contract value of its U.S. commercial business ( TCV ).

Apple ( AAPL ) and Palantir ( PLTR ) released their financial reports after the market closed on Monday, and both companies saw a decline in their stock prices before the market opened on Tuesday.

This iPhone manufacturer had better-than-expected revenue in the fourth quarter, but the sales performance of iPad was weak, and the profit margin forecast given disappointed investors.

Palantir's financial report shows that for the first time in its history, its U.S. commercial segment has generated more revenue than its government business segment.

In pre-market trading, Apple has recently fallen by 3.8%, while Palantir has fallen by 7.8%.

Interpretation of Apple's Financial Report

This is Apple's first financial report since John Ternus took over as CEO from Tim Cook in September.

The company is facing a global shortage of memory chips, with various enterprises competing for computer components. Apple stated on Monday that the cost of memory chips this quarter was higher than in the fiscal quarter of June. Despite the significant increase in chip prices, Tesla still claimed that Apple has just completed "one of its best fiscal years in history."

In an interview with journalist McKenzie Sicallos, he stated that Apple's growth was achieved amidst a backdrop of limited supply chains and unfavorable exchange rates.

Violeta Todorova, a senior research analyst at investment firm Leverage Shares, stated: "The focus of market concerns is on profitability. Management pointed out that memory chips are the main source of pressure, and in addition, the implementation of Siri artificial intelligence functions also brings cost pressures. The shortage of memory also restricts the supply of Mac and iPad. The actual market demand has already exceeded the planned production capacity."

Todorova added: Apple's stock price rose by 25% in 2026, outperforming other large tech companies, but the high valuation premium 'leaves almost no room for error if performance falls short of expectations.'

Interpretation of the Sharp Drop in Palantir's Stock Price

Palantir's financial report revealed that its quarterly revenue nearly doubled year-on-year, breaking through $2 billion for the first time in its history. A research report by investment bank William Blair on Tuesday pointed out, however, that the growth rate of new contracts signed for the company's U.S. business ( TCV ) has slowed down.

Piper Sandler wrote in a research report on Monday: Investors 'will undoubtedly look for evidence over the coming quarters to determine whether the 11% growth in the total value of contracts signed for US business operations is just a short-term coincidence, rather than a structural weakening. We believe this is a short-term fluctuation, and the market demand for Palantir's product solutions still far exceeds supply.'

Responsible Editor: Guo Mingyu