NEW YORK, Jan 30, 2026, 12:50 PM EST — Regular session.
- Palantir shares dropped roughly 2.5% by midday trading.
- A minor Palantir-related data-services contract emerged, yet risk-off sentiment held sway.
- Palantir is set to release its earnings report after the close on Feb. 2, and investors are preparing for the update.
Palantir Technologies Inc shares dropped on Friday, deepening a tough week for pricey software stocks as investors scaled back risk before a busy earnings slate. By 12:50 p.m. EST, the stock had fallen 2.5% to $148.02.
This matters because Palantir faces earnings season with barely any margin for error, just as traders are still reeling from Microsoft’s spending forecast that shook the entire tech sector the day before. Changes in rates and liquidity tend to hit momentum software stocks first. 1
Risk appetite remained subdued following rumors about the next U.S. Federal Reserve chair, which rattled risk assets and fueled a cautious mood that crept into equities intermittently this week. 2
Pressure hit multiple benchmarks as the Nasdaq-100 tracking Invesco QQQ dropped roughly 1.1%, while the S&P 500’s SPDR ETF slid about 0.6%.
Data-engineering company Innodata announced it will provide training data and related services for Palantir’s rodeo event analysis programs, handling video and other “multimodal” data. “Innodata’s high-quality training data and data engineering expertise can help us to scale these capabilities,” said Dimitrios Lymperopoulos, Palantir’s head of machine learning, in the statement. Financial terms were not disclosed. 3
Still, the stock moved with the tape, not the headline. Palantir’s model depends heavily on extended government contracts and an expanding commercial segment, and investors have little patience for any hint of slowing growth.
Analyst talk remained busy. Loop Capital lowered its price target on Palantir to $220 from $230, but held onto its buy rating, MT Newswires reported. (A price target reflects where a broker expects the stock to trade.) 4
Peers showed a mixed picture, mirroring the patchy sentiment in software: Salesforce slipped roughly 1.1%, with Snowflake holding steady.
Timing poses a key risk for Palantir’s supporters. While the Innodata deal looks promising, investors want solid evidence in revenue and margins. Smaller partnerships risk being overlooked in a market turning sharply less tolerant.
Palantir’s next major event is just around the corner. The company will release its fourth-quarter and full-year results on Feb. 2, right after U.S. markets close. A webcast is scheduled for 5 p.m. ET. 5
