Tech Stocks Update: Nvidia and Meta Expand Partnership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy PLTR?
Source: CNBC
- Nvidia Partnership Expansion: Meta's expansion of its partnership with Nvidia to utilize millions of AI chips for data center development led to a 2% increase in Nvidia's stock, reflecting strong confidence in AI demand.
- New York Times Stock Rise: The New York Times Company saw a 3% stock increase after Warren Buffett's Berkshire Hathaway disclosed a new position, indicating market optimism about its future growth potential.
- Palo Alto Networks Warning: Shares of Palo Alto Networks fell 6% after the company issued a weak earnings forecast, projecting adjusted earnings of only 78 to 80 cents per share for the third quarter, significantly below the analyst consensus of 92 cents.
- Analog Devices Earnings Beat: Analog Devices reported earnings of $2.46 per share, exceeding market expectations, resulting in a 9% stock increase, showcasing its strong performance and growth potential in the semiconductor market.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 133.020
Low
50.00
Averages
192.88
High
255.00
Current: 133.020
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Technologies Stock Soars Amid AI Boom
- Significant Stock Growth: Palantir's shares have surged 1,200% over the past three years, driven by consistent earnings growth and positive outlook on demand, attracting early investors' interest.
- Valuation Concerns: Despite the impressive stock rise, high valuation has caused some investors to worry, leading to a 25% decline in stock price this year, reflecting market caution regarding future demand.
- Commercial Customer Expansion: Palantir has increased its U.S. commercial customer base from under 20 five years ago to over 500 today, with the latest quarter's U.S. commercial contract value exceeding $1.3 billion, marking a 67% year-over-year increase, showcasing its successful business transformation.
- AI Platform Driving Growth: The launch of Palantir's Artificial Intelligence Platform (AIP) in 2023 provides customers with a fast and cost-effective way to implement AI, further boosting revenue growth and enhancing market competitiveness.
See More
Burry Critiques Palantir's Financial Stability and CEO Spending
- Uneven Financial Growth: Burry highlighted that Palantir's accounts receivable has outpaced revenue growth in 9 of the last 12 quarters, suggesting potential aggressive sales tactics like channel stuffing, indicating that the company's financial health may not be as robust as it appears.
- Soaring CEO Expenses: The cost of CEO Karp's private jet skyrocketed from $7.7 million in 2024 to $17.2 million in 2025, marking a 123% increase, which is significantly higher than expenditures by other tech executives, raising concerns about the company's spending practices.
- Ambiguous Market Positioning: Burry argued that Palantir's financials resemble those of a consulting firm rather than a typical SaaS company, indicating an unstable revenue model reliant on custom work rather than software sales, which could undermine investor confidence.
- Stock Price Downgrade: Burry forecasts that Palantir's stock could drop to around $54, and with his technical analysis suggesting a head-and-shoulders pattern, he warns of a potential decline exceeding 40%, reflecting market apprehension about the company's future performance.
See More
Analysis of the Reasons Behind Software Stock Pullback
- Market Sentiment Shift: In 2025, Palantir Technologies has seen its stock price drop about 22%, while Adobe, Salesforce, and ServiceNow have all slid between 25% and 30%, indicating increasing investor concerns about software stocks despite strong performance reports from these companies.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have run ahead of their underlying fundamentals, leading to a market reassessment of these high-valuation stocks, which could further depress prices.
- Misunderstanding of AI Impact: While AI is viewed as a potential disruptive force, analysis suggests that its application is actually helping incumbents enhance their competitive advantages rather than simply threatening their market positions, indicating that market fears regarding AI may be misguided.
- Long-Term Growth Potential: Despite Palantir's stock price decline year-to-date, it has risen over 80% since the beginning of 2025, reflecting strong revenue growth and profitability, suggesting market recognition of its long-term growth potential.
See More
Underlying Reasons for Software Stock Sell-off
- Market Sentiment Shift: In 2026, Palantir Technologies' stock has dropped about 22%, while shares of Adobe, Salesforce, and ServiceNow have slid between 25% and 30%, indicating a growing panic among investors despite these companies reporting strong results.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have seen their valuations exceed underlying fundamentals, prompting a market reassessment that has led to recent sell-offs.
- Misunderstanding AI's Impact: While investors fear AI's potential to disrupt the software industry, companies like Palantir and ServiceNow possess complex integrations that make it difficult for competitors to replicate their software, suggesting AI may actually enhance their competitive advantages.
- Uncertain Future Trajectory: Although the current sell-off in software stocks may be justified, the market must remain cautious of valuation risks, particularly with high price-to-sales ratios in companies like Snowflake, CrowdStrike, and Shopify, which could indicate further downside potential.
See More
Analysis of Software Stocks' Significant Decline
- Market Panic: In 2026, Palantir Technologies' stock has dropped approximately 22%, while long-term wealth compounding stocks like Adobe, Salesforce, and ServiceNow have seen declines of 25% to 30%, indicating a growing panic among investors despite these companies reporting strong results.
- Valuation Risk Emerges: With the S&P 500 climbing 78% from 2023 to 2025, high-valuation stocks are facing the risk of re-rating, prompting investors to reassess software companies' valuations even as their fundamentals continue to grow steadily.
- Misunderstanding AI's Impact: While the market fears that AI may disrupt the software industry, companies like Palantir and ServiceNow possess deep domain knowledge and complex integrations that make them nearly impossible to replicate, suggesting that the market's concerns about AI may be based on flawed logic.
- Uncertain Future Trends: Although stocks like Palantir may face further declines, the overall valuation of software stocks remains high, and investors need to carefully evaluate the durability of software companies' competitive advantages to navigate potential valuation risks.
See More
US Stocks Close Higher on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that boosts market confidence and drives stock prices higher.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the housing market that could stimulate investment and consumption in related sectors.
- Manufacturing Production Growth: January manufacturing production rose by 0.6% month-over-month, stronger than the expected 0.4%, marking the largest increase in 11 months, indicating a recovery in manufacturing that supports overall economic growth expectations.
- Optimistic Stock Market Performance: Over 75% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, providing strong support for the stock market despite lingering doubts about future interest rate policies.
See More
Palantir Technologies Stock Soars Amid AI Boom
- Significant Stock Growth: Palantir's shares have surged 1,200% over the past three years, driven by consistent earnings growth and positive outlook on demand, attracting early investors' interest.
- Valuation Concerns: Despite the impressive stock rise, high valuation has caused some investors to worry, leading to a 25% decline in stock price this year, reflecting market caution regarding future demand.
- Commercial Customer Expansion: Palantir has increased its U.S. commercial customer base from under 20 five years ago to over 500 today, with the latest quarter's U.S. commercial contract value exceeding $1.3 billion, marking a 67% year-over-year increase, showcasing its successful business transformation.
- AI Platform Driving Growth: The launch of Palantir's Artificial Intelligence Platform (AIP) in 2023 provides customers with a fast and cost-effective way to implement AI, further boosting revenue growth and enhancing market competitiveness.
See More
Burry Critiques Palantir's Financial Stability and CEO Spending
- Uneven Financial Growth: Burry highlighted that Palantir's accounts receivable has outpaced revenue growth in 9 of the last 12 quarters, suggesting potential aggressive sales tactics like channel stuffing, indicating that the company's financial health may not be as robust as it appears.
- Soaring CEO Expenses: The cost of CEO Karp's private jet skyrocketed from $7.7 million in 2024 to $17.2 million in 2025, marking a 123% increase, which is significantly higher than expenditures by other tech executives, raising concerns about the company's spending practices.
- Ambiguous Market Positioning: Burry argued that Palantir's financials resemble those of a consulting firm rather than a typical SaaS company, indicating an unstable revenue model reliant on custom work rather than software sales, which could undermine investor confidence.
- Stock Price Downgrade: Burry forecasts that Palantir's stock could drop to around $54, and with his technical analysis suggesting a head-and-shoulders pattern, he warns of a potential decline exceeding 40%, reflecting market apprehension about the company's future performance.
See More
Analysis of the Reasons Behind Software Stock Pullback
- Market Sentiment Shift: In 2025, Palantir Technologies has seen its stock price drop about 22%, while Adobe, Salesforce, and ServiceNow have all slid between 25% and 30%, indicating increasing investor concerns about software stocks despite strong performance reports from these companies.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have run ahead of their underlying fundamentals, leading to a market reassessment of these high-valuation stocks, which could further depress prices.
- Misunderstanding of AI Impact: While AI is viewed as a potential disruptive force, analysis suggests that its application is actually helping incumbents enhance their competitive advantages rather than simply threatening their market positions, indicating that market fears regarding AI may be misguided.
- Long-Term Growth Potential: Despite Palantir's stock price decline year-to-date, it has risen over 80% since the beginning of 2025, reflecting strong revenue growth and profitability, suggesting market recognition of its long-term growth potential.
See More
Underlying Reasons for Software Stock Sell-off
- Market Sentiment Shift: In 2026, Palantir Technologies' stock has dropped about 22%, while shares of Adobe, Salesforce, and ServiceNow have slid between 25% and 30%, indicating a growing panic among investors despite these companies reporting strong results.
- Valuation Risk Emergence: With the S&P 500 climbing 78% from 2023 to 2025, many software stocks have seen their valuations exceed underlying fundamentals, prompting a market reassessment that has led to recent sell-offs.
- Misunderstanding AI's Impact: While investors fear AI's potential to disrupt the software industry, companies like Palantir and ServiceNow possess complex integrations that make it difficult for competitors to replicate their software, suggesting AI may actually enhance their competitive advantages.
- Uncertain Future Trajectory: Although the current sell-off in software stocks may be justified, the market must remain cautious of valuation risks, particularly with high price-to-sales ratios in companies like Snowflake, CrowdStrike, and Shopify, which could indicate further downside potential.
See More
Analysis of Software Stocks' Significant Decline
- Market Panic: In 2026, Palantir Technologies' stock has dropped approximately 22%, while long-term wealth compounding stocks like Adobe, Salesforce, and ServiceNow have seen declines of 25% to 30%, indicating a growing panic among investors despite these companies reporting strong results.
- Valuation Risk Emerges: With the S&P 500 climbing 78% from 2023 to 2025, high-valuation stocks are facing the risk of re-rating, prompting investors to reassess software companies' valuations even as their fundamentals continue to grow steadily.
- Misunderstanding AI's Impact: While the market fears that AI may disrupt the software industry, companies like Palantir and ServiceNow possess deep domain knowledge and complex integrations that make them nearly impossible to replicate, suggesting that the market's concerns about AI may be based on flawed logic.
- Uncertain Future Trends: Although stocks like Palantir may face further declines, the overall valuation of software stocks remains high, and investors need to carefully evaluate the durability of software companies' competitive advantages to navigate potential valuation risks.
See More
US Stocks Close Higher on Strong Economic Data
- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that boosts market confidence and drives stock prices higher.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the housing market that could stimulate investment and consumption in related sectors.
- Manufacturing Production Growth: January manufacturing production rose by 0.6% month-over-month, stronger than the expected 0.4%, marking the largest increase in 11 months, indicating a recovery in manufacturing that supports overall economic growth expectations.
- Optimistic Stock Market Performance: Over 75% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, providing strong support for the stock market despite lingering doubts about future interest rate policies.
See More
