Why Is Palantir Stock Surging Friday?

by | Feb 6, 2026 | General

Palantir Technologies Inc. (NASDAQ:PLTR) stock gained in premarket trading on Friday after closing down 6.83% on Thursday, as U.S. futures pointed to a positive open across major indices.

Futures Signal Market Recovery

S&P 500 futures rose 0.42% to 6,849.50, while Nasdaq-100 futures climbed 0.49% to 24,770.75 and Dow Jones Industrial Average futures advanced 0.44% to 49,212.00 as of Friday morning.

Software Sector Faces Historic Pressure

Wedbush analyst Dan Ives told Bloomberg on Thursday that Wall Street is experiencing an unprecedented software selloff, calling it “unlike anything” he’s seen in 25 years. Ives said the market is punishing names like Salesforce Inc. (NYSE:CRM), ServiceNow Inc. (NYSE:NOW), and Microsoft Corp. (NASDAQ:MSFT) “as if they are no longer relevant in the AI age.”

“You have to assume that they’re not just taking the street numbers. You have to assume that they’re actually declining the next few years,” Ives said, adding that valuations suggest some companies could lose approximately 5% of their customers.

However, Ives cited Palantir as “a prime example of how software can still make it in today’s age,” even as AI disrupts the industry.

Palantir’s recent slide to July lows comes despite CEO Alex Karp calling fourth-quarter earnings “indisputably the best results that I’m aware of in tech in the last decade.”

PLTR Earnings Forecast and Analyst Sentiment

Investors are looking ahead to the next earnings report on May 4, 2026.

  • EPS Estimate: 23 cents (Up from 13 cents YoY)
  • Revenue Estimate: $1.54 billion (Up from $883.86 million YoY)
  • Valuation: P/E of 206.4x (Indicates premium valuation)

Analyst Consensus & Recent Actions:

The stock carries a Hold Rating with an average price target of $161.63. Recent analyst moves include:

  • DA Davidson: Neutral (Lowers Target to $180.00) (Feb. 3)
  • Citigroup: Buy (Raises Target to $260.00) (Feb. 3)
  • UBS: Neutral (Lowers Target to $180.00) (Feb. 3)

PLTR’s Positive Premarket Price Movement

PLTR Price Action: Palantir Technologies shares were up 4.43% at $135.77 during premarket trading on Friday, according to Benzinga Pro data.

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