Palantir Technologies Inc. (NASDAQ:PLTR) shares closed Friday at $112.93, gaining 5.28% in a partial recovery from a steep weekly decline. The stock had hit a 52-week low of $106.37 on Thursday and remains 12.1% below its June 18 close of $128.47. That slide erased approximately $40 billion in diluted equity value, based on 2.571 billion diluted shares from the first-quarter earnings report. Friday's bounce added back about $14.6 billion.
The broader market also struggled. The Nasdaq Composite fell 0.24% on Friday and posted a 4.7% weekly loss, while the S&P 500 slipped 0.05% on the day and dropped 2.05% for the week. The PHLX semiconductor index tumbled 7.9% in its worst week since April, reflecting ongoing concerns about AI profitability and capital expenditure. "Questions about AI profitability and capex are certainly not going away," noted David Stubbs, chief investment strategist at AlphaCore Wealth Advisory, in comments to Reuters.
Palantir received bullish news from the U.S. Army on June 22, when the service selected the baseline for its Next Generation Command and Control (NGC2) program. Anduril Industries will lead the effort, but Palantir remains a key partner, providing its Foundry platform for edge-to-cloud data mesh integration. However, the Army did not disclose a dollar value for the award to Palantir. The widely cited 10-year, $20 billion ceiling is part of an enterprise licensing agreement with Anduril, not Palantir, according to Breaking Defense. This lack of clarity is significant given that Palantir's 2026 revenue guidance stands at $7.650 billion to $7.662 billion, and the stock trades at roughly 38 times that midpoint.
Dip buyers emerged during the selloff. Cathie Wood's ARK Invest purchased over 30,500 Palantir shares on Thursday across three of its ETFs, according to trade notifications cited by Investopedia. Four out of six analysts covering Palantir maintain a "buy" rating, with an average price target around $202, per Visible Alpha data. Wedbush analyst Dan Ives kept his bullish stance, calling the stock "way oversold" in comments to Investor's Business Daily. The stock has fallen 36% year-to-date.
Palantir reported first-quarter revenue of $1.633 billion, up 85% year over year. U.S. government revenue rose 84% to $687 million, while U.S. commercial revenue surged 133% to $595 million. CEO Alex Karp described the U.S. as the "constant core" of Palantir's business in the company's SEC filing. The company posted a 60% adjusted operating margin and $925 million in adjusted free cash flow for the quarter. However, CFO David Glazer warned that costs will increase in 2026 as Palantir plans to invest more in products and technical hiring, as reported by Reuters.
U.S. stock markets will operate on a shortened schedule this week, with a full closure on July 3 for Independence Day. Investors are also awaiting June jobs data and the Army's validation work at Project Convergence-Capstone 6 in July. Palantir's near-term technical levels include Thursday's low of $106.37, Friday's high of $114.08, and the prior Monday's close of $119.50, which now serves as resistance above the current market price.
