Apple, Palantir Shares Fall After Earnings Reports Disappoint Investors

Apple and Palantir shares fell in premarket trading on Tuesday following the release of their quarterly earnings reports after the market closed on Monday.

Apple, the maker of the iPhone, reported better-than-expected revenue for its fourth quarter. However, the company missed analysts’ estimates for iPad sales and issued a profit margin forecast that disappointed investors.

Palantir, meanwhile, exceeded Wall Street’s expectations for its third-quarter results, with revenue from its US commercial business surpassing government revenue for the first time.

Despite the stronger-than-expected results, Palantir shares declined by six per cent in premarket trading, while Apple shares dropped 4.4 per cent.

Apple’s earnings report was its first since John Ternus took over as Chief Executive Officer from Tim Cook in September.

The company is also facing a global memory shortage and increasing competition for computer components, with memory costs rising during the quarter compared with the June period.

Despite the supply constraints and higher costs, Ternus said Apple had just concluded its “best fiscal year ever.”

Speaking to CNBC’s MacKenzie Sigalos, he attributed the company’s growth to its ability to navigate supply limitations and foreign exchange headwinds.

However, market concerns remain over the impact of rising costs on the company’s profitability.

Senior Research Analyst at Leverage Shares, Violeta Todorova, said investors were concerned about profitability, citing higher memory costs and expenses associated with the rollout of Siri artificial intelligence.

She added that memory shortages were also expected to constrain Mac and iPad supplies, as demand had exceeded the company’s projections.

Apple shares have gained 25 per cent in 2026, outperforming other major technology stocks. However, Todorova said the company’s high valuation left little room for disappointing results. (Arise News)