After a stock market rebound yesterday, equities are mixed in the early going today. Gold and silver are rallying back strongly following recent losses, while crude oil is rising a bit. Treasuries and the dollar are flat.
The Artificial Intelligence (AI) software and services juggernaut Palantir Technologies Inc. (PLTR) just reported blowout results, with revenue up 70% year-over-year and earnings per share of 25 cents beating estimates by two cents. Both commercial and government sales were strong. The company also forecast stronger-than-expected sales for 2026.
PLTR, TSLA, MSTR, Bitcoin (6-Mo. % Change)
Data by YCharts
Palantir stock popped more than 10% on the news, though it had been slumping recently along with other software names. Investors have been fleeing the space amid fears of a “SaaSpocalypse” (in the words of Jeffries analyst Jeffrey Favuzza). Software stocks sank 15% in January – the most since October 2008 – on concerns that new AI-based tools will pressure profit margins at best, or render their products obsolete at worst.
Speaking of AI, Elon Musk is merging his xAI company with SpaceX ahead of a planned Initial Public Offering (IPO). Musk said the move will create “the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, (and) space-based internet.”
Recent private funding rounds valued xAI at $230 billion and SpaceX at $800 billion. Musk previously folded the X social network into xAI…and reports suggest the combined company could launch its IPO as early as mid-2026. For its part, Musk’s Tesla Inc. (TSLA) has rallied 39.3% in the last six months.
Finally, things aren’t going very well lately for cryptocurrency hoarding and treasury companies like Strategy Inc. (MSTR) and BitMine Immersion Technologies Inc. (BMNR). They've been raising money by selling debt and equity, then plowing those funds into Bitcoin, Ethereum, and other cryptocurrencies to hold on their balance sheets. That worked great when cryptos were soaring, but now that they’re falling, paper losses are piling up. Bitcoin has shed 30% of its value in the last six months, while Ethereum has dropped 31%.
