Today's PLTR Situation

It closed at 196.81, down 0.97% in regular trading. Unlike MSFT, which surged +4.8% after hours, PLTR was slightly down in after-hours trading around195.75. In other words, MSFT's positive momentum did not spill over to PLTR.

• What weighed on PLTR today was RBC's reaffirmation of its Sell rating. RBC (Rishi Jaluria) maintained a Sell rating and a price target of $90 this morning, causing PLTR to drop about 2% in morning trading. The rationale cited valuation (61x 2026 revenue and 40x 2027 revenue, the highest within its SaaS coverage) and a slowdown in quarterly contract revenue.

There is an opposing assessment as well

• Zacks named PLTR its "Bull of the Day" today and maintained a Strong Buy. They cited 15 consecutive quarters of earnings surprises, FedRAMP High certification, 2026 capex under $50M, and Q2 US commercial revenue (+149%) and government revenue (+90%) as the basis.

Indirect Implications of MSFT Earnings

• Azure's +48% growth signals strong enterprise AI spending demand, creating a favorable backdrop for AI software companies in general. However, the key for PLTR is not MSFT's performance, but its own Q3 earnings report coming after market close on 11/2. The company's guidance targets revenue of 2.160–2.164B, while the market expects an EPS of0.33, and PLTR has beaten consensus for the past four consecutive quarters.

In summary, despite MSFT's strong results, PLTR showed weakness today amidst a valuation debate (RBC Sell vs. Zacks Strong Buy), and the event that will determine its direction is its 11/2 earnings.