Palantir Tumbles 10%, CrowdStrike Sinks 9% as Wall Street Dumps Software’s AI Winners; Okta Drops 10%

Wall Street’s post-election retreat from AI trades has spread to software, and Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) is taking one of the hardest blows. Palantir stock is at $155.28 in afternoon trading, down 10%. The slide has wiped about $40 billion off the company’s market value, and it puts Palantir on pace for its worst day since February.

Palantir stock sits roughly a quarter below its October 9 record and is testing a closely watched long-term moving average. At this point, PLTR stock is down 13% year to date (YTD). That makes it the exception to a pattern in which the hardest-hit software names are the ones that ran the farthest this year.

Midterm Results Drag the AI Selloff Into Software

Democrats won both chambers of Congress in the November 3 midterm elections after a campaign in which candidates from both parties targeted AI data centers, Yahoo Finance reported. Chip stocks took the first wave of selling, and the pressure has now reached Palantir and the other software names most tied to the AI build-out. U.S. indexes are sliding, with the NASDAQ Composite down more than 5% and the S&P 500 down more than 3%.

Palantir’s Q3 2026 report on November 2 is background to this move: adjusted EPS of $0.44 beat expectations of $0.41, and its revenue rose 96% year over year (YoY) to $2.31 billion. The company’s U.S. commercial revenue of $984 million exceeded its U.S. government revenue for the first time, and management raised its full-year revenue guidance to between $8.53 billion and $8.534 billion. CEO Alex Karp told analysts on the call, “We really cannot satiate demand.” Risks flagged in the company’s filing include slowing total contract value growth and rising stock-based compensation.

CrowdStrike and Okta Give Back Bigger Gains Than Palantir

CrowdStrike Holdings (NASDAQ:CRWD) stock is at $218.24, down 9%. After that drop, CrowdStrike stock remains up 86% YTD with Wall Street is selling software’s AI winners and mostly leaving the year’s laggards alone. Software names already beaten down by fears that AI could eat into their businesses are barely moving.

Okta (NASDAQ:OKTA) stock is at $172.04, down 10%. Measured from the start of the year, Okta stock is still up 98%, the largest YTD gain among Palantir, CrowdStrike and Okta. That run puts Okta squarely among the year’s winners now being sold, and its slide matches Palantir’s.

Palo Alto Networks (NASDAQ:PANW) is another infrastructure-security name in the group that’s falling fast. By contrast, Fortinet (NASDAQ:FTNT) stock is declining far less than the others.

How Palantir’s Business Differs From CrowdStrike and Okta

Palantir sells software platforms, including Foundry, Ontology and AIP, that governments and companies use as operating infrastructure for AI. CrowdStrike runs Falcon, a subscription cybersecurity platform sold on a land-and-expand model in which customers add modules over time. Okta focuses on identity and access management, securing workforce and customer logins and, increasingly, the AI agents operating inside companies.

Both security vendors pitch AI as a reason customers need more protection, while Palantir sells the AI deployment itself. On Okta’s August 26 call, the company’s chief executive stated that the AI agent business was “still too small to show up in the numbers right now.” Fortinet pairs FortiGate firewall appliances with subscription services, a hardware tilt that sets it apart from the pure software names in this group.

Palantir Faces a Repricing Test as AI Software Cools

Palantir now faces the question of whether its U.S. commercial momentum can hold up as the market reprices AI exposure across software. Palo Alto, CrowdStrike and Okta all have earnings reports ahead, which could give the security group a fresh chance to show that demand is holding. Beyond earnings, the October jobs report is the coming macro test for stocks broadly.

Palantir’s raised outlook gives the bulls a case, along with the AI-driven security demand its peers described in their latest results. For the bears, the risk is a political background that has turned against AI infrastructure, plus valuations that may leave little room for disappointment. A conservative investment approach looks wise while the AI software repricing plays out (riding a rally this stretched may be fine as long as you plan the exit, which is the whole subject of our free bubble survivor’s handbook).

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