Palantir Slides 7.2% as Software Selloff Erases Its Record Breakout

PLTR fell 7.2% on Friday to $186.03, according to SentiSense data, erasing about $34 billion in market value. The close put the stock below $188.15, the level Yahoo Finance flagged as more than 10% beneath Palantir's October 9 record close, which places it in correction territory less than a week after it reached nearly $213 on Monday.

The move was part of a broad retreat in software. A 45-stock Yahoo Finance software basket lost more than $260 billion in combined value on the day, including about $83 billion at MSFT, with 43 of the 45 names falling. Yahoo Finance pointed to several pressures without naming a single cause: a morning rally in software that faded after Bank of America's upgrade of Salesforce, a cybersecurity ETF down about 10% on the week with PANW and CRWD each off about 18%, and reports that OpenAI was in talks to acquire Trail of Bits, which revived worries about AI labs competing with software vendors.

Context from the wider tape: the S&P 500 fell 1.1% to 7,659.44 and the Nasdaq dropped 2.1% to 26,140.03, the worst week for both since June, as the selloff in AI-linked chip stocks spread to software. For Palantir, which trades on expectations of sustained AI-driven growth, the reversal shows how quickly momentum can unwind when sector sentiment turns.

What to watch: whether the stock can reclaim the $188.15 correction line, how the software basket trades after a second losing week, and whether upcoming earnings from large software peers steady or extend the selling.