"Software stocks are experiencing what some call a " SaaSpocalypse " as fears mount that AI programs will enable companies to build their own software, minimizing the need for traditional vendors. The iShares Tech-Expanded Software ETF dropped over 3% on February 11, with Palantir caught in the selloff despite positioning as an essential AI infrastructure provider rather than traditional SaaS."
"The panic stems from the "Anthropic shock", with AI potentially cutting delivery timelines and pressuring traditional outsourcing models. Yet Palantir's business model differs fundamentally. While legacy software vendors face disruption, Palantir provides the AI platform that enables the disruption. Its 82% gross margin and 36% profit margin reflect a company selling AI infrastructure, not commoditized software. Still, sector-wide selling pressure explains why Palantir trades at $131 despite strong revenue growth in Q4."
"Every single insider transaction from November 15, 2025 through February 13, 2026 was a sale. Zero buying. CEO Alex Karp sold shares as recently as February 2 at prices between $147 and $151. COO Shyam Sankar liquidated 149,872 shares on November 20 immediately after receiving them. Director Alexander Moore executed 16 separate transactions on January 2 alone, selling across a price range"
Palantir Technologies’ share price fell 3.3% to $131.41, extending a 26% year-to-date decline despite blowout earnings less than two weeks earlier. The stock underperformed while the S&P 500 dipped 1.3%, as AI momentum collided with software-sector panic. Fears of a SaaSpocalypse reflect concerns that AI will enable companies to build in-house software, pressuring legacy vendors. Palantir’s business model differs by providing AI infrastructure, evidenced by 82% gross margin and 36% profit margin, yet sector-wide selling and multiple contraction have driven the price lower. Insider transactions from November 15, 2025 through February 13, 2026 consisted solely of sales.
Read at 24/7 Wall St.
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