New York, Feb 6, 2026, 07:52 (EST) — Premarket
Palantir Technologies Inc (PLTR.O) shares slipped 6.8% in premarket trading Friday, pulling back to $130.01. The stock faced selling pressure as investors moved away from AI-linked software companies.
This matters because Palantir has turned into a fast barometer for the AI trade, often swinging sharply with shifts in market sentiment. The main battle now revolves around valuation and timing: who cashes in first as AI spending ramps up.
Palantir tumbled 6.8% on Thursday, pressured by Alphabet’s announcement of up to $185 billion in capital expenditure for 2026, which has investors weighing costs alongside potential gains. “We’re seeing this volatility about whether this investment will translate, ultimately, into results,” noted Tom Hainlin, investment strategist at U.S. Bank Wealth Management. The S&P 500 software and services index slid 4.6%, marking its seventh consecutive decline, while ServiceNow plunged 7.6%. Reuters
Palantir dropped nearly 12% on Wednesday, erasing a sharp bounce from the day before that came after its quarterly earnings, Reuters reported. “The stock market is having a really hard knowing where to price the stocks and what the future looks like,” said Jed Ellerbroek, portfolio manager at Argent Capital. Shares of Snowflake slid 4.6%, while Datadog dipped 3.3% as selling pressure hit the software sector. Reuters
Cognizant announced late Thursday it’s teaming up with Palantir to accelerate AI-driven upgrades in healthcare and enterprise ops. The deal links Palantir Foundry and its Artificial Intelligence Platform (AIP) with Cognizant’s TriZetto healthcare systems. “This partnership reflects our commitment to using frontier technologies to deliver value,” said Surya Gummadi, Cognizant’s president for the Americas. Eric Lakin, Palantir’s U.S. commercial lead, described it as an opportunity to “embed AI into core workflows” at TriZetto. News | Cognizant Technology Solutions
Palantir reported Q4 revenue of $1.407 billion and adjusted EPS of $0.25 earlier this week, according to a company filing with the SEC. It set full-year 2026 revenue guidance between $7.182 billion and $7.198 billion and projected Q1 revenue of $1.532 billion to $1.536 billion. The update shifted expectations, triggering a selloff across the software sector. SEC
The near-term picture looks complicated. If risk appetite sours further, selling could pick up, despite Palantir’s ongoing partner signings and new deployment pitches. The downside is straightforward: investors may continue trimming pricey software positions until AI spending delivers more tangible returns.
Traders are gearing up for next week’s U.S. data, with the delayed January jobs report landing Wednesday, Feb. 11, and the consumer price index set for Friday, Feb. 13. Earnings from Datadog and AppLovin could sway software sector sentiment following this week’s selloff. Palantir faces its next hurdle as the market reacts to those results once U.S. stocks open. Reuters
