Shares of Palantir Technologies rose in early trading on Monday, rebounding after a recent selloff as high-profile support from investors and political figures helped lift sentiment.
The stock gained about 2.49% before the bell, trading near $131, even as broader market futures pointed lower amid geopolitical tensions.
The move higher follows a difficult stretch for Palantir, with the stock down nearly 23% year to date and more than 13% last week alone, as concerns about competition in artificial intelligence weighed on sentiment.
Cathie Wood adds to position amid selloff
Investor interest in Palantir received a boost after Cathie Wood increased her firm’s exposure to the stock.
ARK disclosed that it purchased 85,485 shares of Palantir across five exchange-traded funds, a position valued at roughly $11 million based on recent prices. The largest allocation came from the ARK Innovation ETF, which added 46,455 shares.
Additional purchases were spread across ARK’s other funds, including the ARK Autonomous Technology ETF, ARK Next Generation Internet ETF, ARK Fintech Innovation ETF, and ARK Space Exploration ETF.
The buying activity suggests Wood may be taking advantage of the stock’s recent weakness, which has come under pressure as investors question whether Palantir can sustain growth at levels needed to justify its valuation.
Shares are currently trading at around 99 times expected earnings for 2026, underscoring ongoing concerns about lofty multiples in the AI-driven software space.
AI competition concerns weigh on sentiment
Palantir’s recent decline has been driven in part by fears that it could lose ground to newer AI competitors. The debate intensified after comments from investor Michael Burry, who said on social media that Anthropic “is eating Palantir’s lunch.” The post was later deleted.
Despite these concerns, some analysts have pushed back against the bearish narrative.
Wedbush Securities analyst Dan Ives described worries about competition with Anthropic as a “fictional bear narrative” that “will be proved emphatically wrong.”
Still, the uncertainty around AI leadership and the pace of innovation continues to weigh on investor sentiment, particularly as capital flows toward emerging players in the space.
Trump endorsement adds to support
Palantir also received public backing from Trump, which helped the stock recover some ground during a volatile trading session last week.
“Palantir Technologies (PLTR) has proven to have great war fighting capabilities and equipment. Just ask our enemies!!!,” the president said in a post on Truth Social.
The endorsement comes as Palantir continues to position itself as a key provider of data analytics and AI-driven solutions, particularly in defense and government applications.
While the stock’s recent rebound reflects renewed optimism, investors remain focused on whether the company can translate its technological capabilities into sustained earnings growth in an increasingly competitive AI landscape.
As the debate over valuation, competition, and long-term growth continues, Palantir remains a closely watched name in the evolving artificial intelligence sector.
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