New York, Feb 23, 2026, 10:30 EST — Regular session
- Palantir shares slipped roughly 4% early, moving lower alongside other high-beta software stocks.
- Fresh tariff headlines landed just as risk appetite faded for AI-linked names, giving investors something new to chew on.
- This week’s late batch of earnings has traders eyeing potential shifts in AI spending forecasts.
Palantir Technologies (PLTR.O) dropped 4.0% to $129.84 in mid-morning trading Monday, having earlier hit a session low of $127.44. That’s a $5.40 slide from Friday’s close, with the stock showing sharp swings since the bell.
This shift is drawing attention. Palantir now sits at the heart of the market’s debate over AI’s impact on software—does it actually drive growth, or just tighten pricing and budgets? When sentiment sours, traders usually reach for the same stocks right away.
Pressure is building on that basket in credit markets. Software firms are pushing back debt offerings as lenders weigh up the AI disruption premium, according to Reuters. UBS credit strategist Matthew Mish sees the shakeup stretching across a two-year span. PineBridge’s Jeremy Burton didn’t mince words: “you’ve really got to be confident.” (Reuters)
Investors had more to chew on Monday after President Donald Trump revealed a 15% global tariff. Markets are now waiting for specifics and watching for ripple effects on profits and supply lines. The tariff kicks in Tuesday, according to Investopedia. (Investopedia)
Palantir’s earnings report in February showed a more solid financial outlook than recent moves in its stock. The company projected 2026 revenue between $7.182 billion and $7.198 billion, with U.S. commercial revenue topping $3.144 billion. Adjusted free cash flow is expected to land anywhere from $3.925 billion to $4.125 billion. (Last10K)
Government contracts continue to anchor Palantir’s narrative—not only on the top line. CEO Alex Karp, for his part, has stood by the company’s collaborations with state agencies. “There are safeguards to prevent government overreach,” Karp told Reuters earlier this month. (Reuters)
Right now, Palantir’s trading pattern looks more like a fast-moving AI software risk gauge than a bet on any one company. Macro headlines that shake up financial conditions or cloud demand usually send the shares swinging hard, either way.
The flip side isn’t hard to sketch out: tariff jitters hit harder, growth concerns get worse, and AI outlays stall. That’s when investors shrink back from long-duration software names. A slip-up in bookings, or any sign of weakness in government spending, would just pile on.
Feb. 25 brings a trio of key reports: Nvidia, Snowflake, and Salesforce all deliver earnings, with Salesforce releasing figures after the bell. This lineup could shift investor views on AI spending and appetite for enterprise software. (NVIDIA Investor Relations)
