Palantir Technologies shares fell 6.5% on February 5, 2026. The decline followed the release of Anthropic’s Claude Opus 4.6 and OpenAI’s Frontier platform. These autonomous agents sparked concerns regarding AI replacement of traditional software. The new models can perform enterprise tasks directly, potentially commoditizing workflows into low-cost API calls.
The sell-off reflects broader pressure across the technology sector. Massive AI capital expenditure announcements from Alphabet and Amazon triggered a SaaSpocalypse. This market event erased more than $285 billion in market value from software firms.
Despite the price drop, Palantir maintains strong growth projections. The company expects earnings per share to grow by 49.7%. Cash flow growth is projected at 665.2%. This downward move reverses recent momentum gained from a Hyundai partnership and a Citi upgrade announced 13 days ago.