Palantir Technologies Inc. (PLTR) shares dropped roughly 2% on Monday, extending a downward streak that has now shaved 6.82% off the stock over the past week. The move comes despite the company reporting first-quarter earnings last Monday that beat analyst estimates on both the top and bottom lines.

Nasdaq futures were down 0.16% and S&P 500 futures slipped 0.12% in early trading, but Palantir's decline was steeper, suggesting company-specific headwinds.

Earnings Beat, But No Rally

Palantir reported Q1 revenue of $1.63 billion, topping the $1.54 billion consensus estimate. Adjusted earnings came in at $0.33 per share, above the $0.28 expected. Normally, that kind of beat would send a stock higher. But Palantir shares have been under pressure since the report, with the market seemingly focused on something else.

Analysts See AI Value and Government Growth

Analysts, at least, remain bullish. Rosenblatt raised its price target from $200 to $225, noting that Palantir's revenue outlook exceeded prior Street high-end estimates. The analyst said the company's platform remains a critical differentiator for enterprise AI adoption.

Piper Sandler maintained an Overweight rating and a $230 price target. The firm highlighted that Palantir's U.S. government business surged 84% year over year in the first quarter, and that strong exposure to critical government programs drove the guidance hike.

Technical Picture Looks Bearish

Technically, the stock is in a rough spot. It's trading 4.5% below its 20-day simple moving average (SMA), 7.4% below its 50-day SMA, 12.3% below its 100-day SMA, and 17.7% below its 200-day SMA. The trend structure is bearish: the 20-day SMA is below the 50-day SMA, and a death cross formed in February, with the 50-day SMA crossing below the 200-day SMA.

Momentum, as measured by the Relative Strength Index (RSI), sits at 46.48 — neutral territory, but leaning slightly toward the sell side.

Key resistance is at $156, while support sits at $122.50. As of premarket Monday, Palantir shares were trading at $134.72, down 2.24%.

So why the disconnect? It could be that the market is looking past the beat and focusing on valuation, or that the broader tech selloff is dragging down even strong performers. Either way, Palantir's AI story is intact, but the stock is in a technical funk.