NEW YORK, Feb 10, 2026, 10:28 (EST) — Regular session
- Palantir climbed roughly 1.6% following a Buy upgrade from Daiwa.
- Software names are still twitchy following last week’s AI-driven selloff.
- This week’s U.S. jobs and inflation reports could end up setting the tone for high-multiple tech stocks.
Shares of Palantir Technologies (PLTR.O) gained 1.6% to $145.14 in morning action Tuesday, boosted by an upgrade from Daiwa. The move stood out on a jittery day for software names. Palantir shares ranged from $143.50 to $146.24.
Why does it matter? Software stocks with lofty valuations have come under pressure, as the surge in AI technology sparks fresh concerns over the fate of established business models. Palantir—widely viewed as an AI bellwether—has found itself swept up in this same tide.
Tuesday’s bid carries a macro twist. December’s U.S. retail sales came in flat—no one saw that coming. The government, still working through a backlog from last year’s shutdown, hasn’t caught up on the numbers; Reuters says the initial GDP read for the fourth quarter will land next week. 1
Daiwa Capital Markets bumped Palantir up to “Buy” from “Neutral,” though it trimmed the price target down to $180 from the earlier $200, research note summaries showed. Analyst Shigemichi Yoshizu pointed to a “positive impression” after the earnings release and expects Palantir’s “sharp growth will persist and accelerate.” 2
Valuation? Still a thorny spot. Mark Giarelli over at Morningstar bumped his fair value target up to $150 a share—up from $135—after management projected 61% revenue growth for 2026 and highlighted a “rule of 40” figure reaching 127% for the quarter. Still, he flagged the risk: if growth loses steam, that “premium valuation multiple” could shrink fast. 3
Uncertainty still hangs over the market. According to a Reuters analysis, software and services names have trailed the S&P 500 by almost 24 percentage points in the past three months. Investors retreated after a worldwide selloff, rattled by worries that emerging AI technologies might upend the sector. 4
Implied volatility, pulled from option pricing and reflecting traders’ expectations for swings, remains high across the sector. That’s making single stocks such as Palantir especially vulnerable to sudden reversals.
Still, a ratings bump alone won’t change the tape. Should software stocks resume their slide, or if investors start doubting the growth story that underpins the bull case, Palantir’s moves could shift from steady to sharp in a hurry.
On the docket: The Labor Department has the U.S. January jobs report slated for Wednesday, Feb. 11 at 8:30 a.m. ET. The January CPI follows on Friday, Feb. 13, also at 8:30 a.m. ET. 5
For Palantir, traders are watching to see if Tuesday’s bump holds up before the upcoming reports — or if the stock just gets swept back into the broad software churn that’s been moving one name after another.
