Why did Palantir stock drop today?

Rotation out of software and into chipmakers, plus profit-taking after a strong 2025, pushed shares lower. Intraday, the price ranged from $166.35 to $181.35. We also saw softer risk appetite after weak Tesla deliveries, which weighed on momentum tech and added pressure to richly valued AI software names.

Is Palantir stock overvalued right now?

It trades near 364x TTM EPS, about 98.9x sales, and roughly 60.5x book. Those premiums imply high execution risk if growth slows. The company has strong margins and low leverage, but Palantir valuation risk remains elevated until revenue, deal flow, and cash generation accelerate further.

What technical levels matter after today’s move?

Watch support around $166 to $171, including the Keltner lower band at $167.33 and lower Bollinger Band at $171.42. The 50-day average near $181.21 is initial resistance, and the 200-day around $150.62 is deeper support. RSI at 37 suggests weak momentum, with Stochastic near oversold.

What are the key catalysts for Palantir in early 2026?

The February 2 earnings report is central. Investors want updates on AIP adoption, large government contracts, and commercial deal sizes. Analyst targets center around a $162.50 median, so guidance and pipeline color could drive a rerating. Margin durability and cash flow trends will also be in focus.

Global Market Insights

PLTR Stock Today: January 04 — Software Rotation, Profit‑Taking Hit Shares

ByDanny Kontos January 5, 2026January 5, 2026

Palantir stock slid early on January 4 as software names faced rotation into chips and traders locked in 2025 gains. Shares of PLTR traded near $167.86 intraday (low $166.35, high $181.35). Some sentiment cooled after weak Tesla deliveries, adding pressure across high-beta tech. With a rich multiple and big AI expectations, near-term swings look likely. We break down software sector rotation, profit-taking pressure, Palantir valuation risk, key technical levels, and what to watch before February earnings.