New York, Jan 29, 2026, 17:29 EST — Trading after hours.
- Palantir shares dipped roughly 3.5% to $151.86 following a choppy session.
- A wide selloff in software shares reignited concerns over AI disruption and hefty spending by Big Tech.
- Innodata said Palantir chose it for training data and data engineering; Palantir will report results on Feb. 2.
Palantir Technologies’ shares dropped roughly 3.5% to $151.86 after the U.S. market closed on Thursday. Throughout the day, the stock fluctuated between $147.16 and $159.94.
The slump followed a broader selloff in software stocks, sparked by SAP’s gloomy cloud forecast and a post-earnings dip in ServiceNow. Investors worry AI is encroaching on the subscription software space, often known as SaaS (software-as-a-service). “The market’s kind of … pricing a worst-case scenario that software is dead,” said LPL Financial’s Adam Turnquist. (Reuters)
Investors felt the strain following another batch of Big Tech earnings and capex updates. Microsoft’s steep drop after missing cloud revenue estimates sent shockwaves through the sector, reigniting a familiar debate: who’s footing the bill for the AI expansion, and when will profits follow? (Reuters)
Company news failed to buoy the market. Innodata, a data-engineering firm, announced Palantir picked it to supply training data and engineering support for “AI-powered rodeo modernization” and event analysis. Palantir’s head of machine learning, Dimitrios Lymperopoulos, said this effort could help the company “scale these capabilities” for clients. Financial details were not shared. (Innodata Investor Relations)
The decline sets the stage for Palantir’s upcoming key event. The company plans to release its fourth-quarter and full-year 2025 earnings on Monday, Feb. 2, after U.S. markets close, with a webcast scheduled for 5 p.m. ET. (Business Wire)
Guidance, margins, and the speed of new deployments will be under the microscope, especially as sentiment around pricey software stocks swings sharply with every earnings release.
That said, risks are evident. Should Palantir miss its ambitious outlook or if investors remain focused on the hefty AI spending and whether software pricing holds up, the stock may remain vulnerable to sharp swings across the sector.
Traders will be eyeing if the software selloff continues in the next session and if Palantir manages to stay above Thursday’s lows. The key event to watch is the earnings report on Feb. 2.
