What Happened?
Shares of data analytics company Palantir Technologies (NASDAQ: PLTR) jumped 3.3% in the afternoon session after reports revealed the company was close to signing a letter of intent with Poland's Ministry of Defense.
The potential agreement aimed to improve collaboration in cybersecurity and artificial intelligence. This news added to a series of positive developments for the data analytics firm. Palantir also recently formed a multi-year strategic partnership with Lumen Technologies to help businesses adopt AI more quickly. In another development, Red Cat Holdings announced a successful flight test of its drone equipped with Palantir's software, which allowed the drone to complete missions in areas without GPS.
The shares closed the day at $189.15, up 2.5% from previous close.
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What Is The Market Telling Us
Palantir Technologies’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 5.2% on the news that new trade tensions and disappointing earnings from major tech companies weighed heavily on investor sentiment.
A key driver was the news that the White House is considering new restrictions on Chinese exports that use U.S. software, a move that could significantly impact technology companies. This uncertainty over escalating trade tensions created a broad sense of worry in the market. Simultaneously, shares of the semiconductor giant Texas Instruments dropped 6% after its latest earnings and future revenue forecast both came in weaker than expected, which is a big concern for the health of the tech industry. This poor performance from Texas Instruments immediately dragged down the entire semiconductor sector, causing other major chipmakers like Advanced Micro Devices and Micron Technology to also see significant declines.
Compounding the bad news, streaming service Netflix saw its stock slump 9% after it missed its earnings targets, partly blaming a tax dispute in Brazil. The combined effect of renewed trade war fears and the direct evidence of underperformance from influential companies in the technology sector was enough to push the major market indexes lower.
Palantir Technologies is up 151% since the beginning of the year, and at $188.90 per share, it is trading close to its 52-week high of $189.16 from October 2025. Investors who bought $1,000 worth of Palantir Technologies’s shares 5 years ago would now be looking at an investment worth $17,251.
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