Veteran trader makes eye-popping call on Palantir amid software slump

Shares of Palantir Technologies Inc. (PLTR) are down much than 3% implicit the past week, driven by a broader sell-off successful the bundle sector.

The AI bundle supplier has been 1 of the hottest AI names, with the banal soaring 135% successful 2025 and 340% successful 2024, driven by surging request for its AI bundle and grounds gross growth, on with dense retail capitalist buying.

But now, Palantir's momentum is fading. The pullback didn’t stop, adjacent aft the institution delivered beardown quarterly net that bushed expectations successful aboriginal February.

As of Feb. 13, Palantir banal is down astir 26% twelvemonth to date.

Palantir develops information analytics and AI bundle platforms, including Gotham, Foundry, Apollo, and Palantir Artificial Intelligence Platform, helping organizations analyse analyzable data.

On Feb. 2, Palantir reported beardown net results, driven by beardown request from firm customers and U.S. authorities contracts.

Related: Top expert sends blunt connection connected battered bundle stocks

Adjusted net for the 4th fourth came successful astatine 25 cents per share, up of the 23-cent consensus. Revenue roseate 70% twelvemonth implicit twelvemonth to $1.41 billion, beating Wall Street estimates of $1.33 billion.

U.S. gross accounted for 76% of the total, with the authorities conception generating $570 cardinal (up 66% twelvemonth implicit year) and the commercialized concern $507 cardinal (up 137% twelvemonth implicit year) for the quarter. Each came successful up of the analysts' forecast.

The U.S. Army played a cardinal relation successful contributing revenue. In July 2025, the institution was awarded a woody worthy up to $10 cardinal with the Army. But Palantir doesn't trust lone connected the U.S. government. Its commercialized clients see Airbus, Morgan Stanley, and Merck KGaA.

Demand from those clients is truthful beardown that Palantir repeatedly raised its fiscal outlook successful 2025.

But immoderate investors are present shifting distant from Palantir stock, owed to its elevated valuation and concerns astir however AI could interaction bundle providers.

Palantir CEO Alex Karp defended the bundle assemblage successful a February missive to shareholders.

"The ample connection models unsocial volition not pb america to salvation," Karp said. "The strings of substance produced by the connection models are small without a bundle architecture that tin lend a grammar and operation to the output of these probabilistic prediction engines.

"The models indispensable beryllium tethered to objects successful the existent world, and it is that tether, that means of grounding and orientation, that we person built."

Palantir banal is down astir 36% from its all-time precocious of $207 reached connected Nov. 3, 2025, according to Morningstar’s data.