On Monday morning, Palantir Technologies Inc. (NASDAQ: PLTR) saw its stock price climb in premarket trading, continuing its upward trajectory from Friday amid an unsettled atmosphere across the software industry. The software sector remains highly volatile as investors navigate a mix of market recovery and persistent concerns about company valuations within the AI-driven technology space.
The stock had rebounded towards the end of last week, closing 4.53% higher at $135.90 following a sharp 6.83% decline the day before. This rebound comes as broader indicators across major market indices showed signs of stabilization, reflecting tentative recovery sentiments among investors.
Wedbush analyst Dan Ives provided insight into the ongoing turmoil on Thursday, describing the current software selloff as a phenomenon unprecedented in his 25 years of experience. He highlighted that Wall Street is applying severe pressure to major players in the software industry — including Salesforce Inc. (NYSE: CRM), ServiceNow Inc. (NYSE: NOW), and Microsoft Corp. (NASDAQ: MSFT) — treating them as if their relevance was diminishing in the accelerating AI era.
From a technical perspective, Palantir’s stock was trading roughly 14.7% beneath its 20-day simple moving average (SMA) and 21.9% below its 100-day SMA, both indicators signaling a bearish trend in the short term. Conversely, the company’s shares have risen 16.5% over the past year and remain closer to their 52-week highs than lows, demonstrating stronger performance on a longer-term basis.
Analysts examining momentum indicators observed a somewhat mixed outlook. The Relative Strength Index (RSI) registered at 32.26, positioned in neutral territory rather than signaling overbought or oversold conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator showed bearish pressure as it lingered below its signal line. This combination of neutral RSI and bearish MACD suggests a cautious stance among traders, with momentum lacking clear conviction in either direction.
Key technical levels to monitor include resistance at $145 and support at $119, which could influence trading decisions depending on the stock's ability to break above or fall below these thresholds.
Looking ahead, Palantir is scheduled to release its next earnings report on May 4, 2026, with projections indicating improvement in financial performance compared to the previous year. Analysts expect earnings per share (EPS) of 26 cents, representing an increase from 13 cents year over year, while revenue estimates suggest growth to approximately $1.54 billion versus $883.86 million in the prior period.
Despite the anticipated growth, valuation remains a point of contention. With a price-to-earnings (P/E) ratio of approximately 215.7 times expected earnings, Palantir trades at a substantial premium relative to typical market standards.
Analyst consensus currently categorizes the stock with a Hold rating and assigns an average price target of $161.33. Recent influential broker actions include:
- DA Davidson adjusting their target downward to $180 on February 3 while maintaining a Neutral stance
- Citigroup increasing its target to $260 and issuing a Buy rating on the same date
- UBS lowering its target to $180, also on February 3, with a Neutral outlook
In terms of comparative metrics, Palantir scores strongly on growth potential with a robust rating of 92.07, suggesting promising expansion opportunities relative to its peers. However, the stock fares poorly in categories such as value (1.74) due to its expensive valuation and momentum (23.6), indicating underperformance against broader market trends.
During the Monday premarket session, Palantir's shares were trading around $137.60, marking a 1.25% increase, underscoring some positive activity despite ongoing sector-wide headwinds.
The current investing environment places a spotlight on distinct phases of AI-related technology adoption. Industry observers differentiate between an initial wave centered on foundational technologies like semiconductors and data infrastructure, and a subsequent phase focused on more specialized applications such as AI-driven drug discovery and autonomous cybersecurity solutions. Palantir’s positioning within this latter phase reflects its emphasis on turning complex data into actionable insights, which resonates with investor interest in emerging AI opportunities.