Palantir fell about 7% Friday, wiping out roughly $34 billion in value and leaving the stock near the $188.15 level that would mark a correction from its Oct. 9 record close.
The drop followed a failed breakout: shares cleared the old November 2025 high near $208 last week, touched nearly $213 Monday, then slipped back below resistance in a classic bull trap.
Across a Yahoo Finance basket of 45 software names, 43 were down and 15 were losing at least 5%; Microsoft alone shed about $83 billion, while ServiceNow and Salesforce reversed early gains.
The selloff also hit cybersecurity, with the CIBR ETF down roughly 10% for the week and Palo Alto Networks and CrowdStrike each off about 18% amid renewed AI competition concerns.
For Palantir, the reversal underscores how much growth is already priced in: after reporting 93% second-quarter revenue growth and $9.2 billion in cash in August, it still trades at about 55 times projected annual revenue.