Palantir Rallies 7% as PwC Alliance Counters Michael Burry Bear Case, ServiceNow Climbs 5%, Salesforce Gains 3%
Quick Read
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Palantir surged 9% and ServiceNow climbed 6% as an expanded PwC alliance countered Michael Burry's short thesis and AI platform momentum broadened.
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The iShares Expanded Tech-Software ETF gained 4%, confirming today's enterprise AI surge as sector-wide rather than a single-stock reversal.
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Michael Burry flagged accounts receivable surging to $1.49 billion with one customer holding 27% of that total, a concern today's rally leaves unresolved.
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Enterprise AI software stocks are running higher this morning as Palantir answers a fresh short call from Michael Burry with a broadened PwC alliance, and the reaction is spilling across enterprise software peers. The iShares Expanded Tech-Software Sector ETF( NASDAQ:IGV ) is up 4% to $107.13, framing the session as a sector move rather than a lone reversal. That distinction matters because it argues against reading the day narrowly as a single-name pop.
Palantir Technologies( NASDAQ:PLTR ) stock is up 7% to $182.06 after the company said it expanded its alliance with PwC US to build an AI-native deals platform on Foundry and AIP. Meanwhile, ServiceNow( NYSE:NOW ) shares are up 5% to $144.13, extending a rally that's been building since its Q2 2026 results in July. Salesforce( NYSE:CRM ) stock is up 3% to $264.53, riding continued enthusiasm around Agentforce and Data 360 momentum.
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PwC Alliance Answers a Burry Short Call
Palantir Technologies said it expanded its strategic alliance with PwC US to cover enterprise AI, M&A transformation, and enterprise resource planning (ERP) modernization, combining Palantir Foundry and AIP with PwC's engineering and managed services. The centerpiece is an AI-native deals platform built on Foundry and AIP that Palantir said is designed to execute transactions up to 50% faster and cut one-time transaction costs by up to 45%. No contract value was disclosed, which leaves the revenue contribution unpriced for now, though the reach of the PwC brand across large enterprise buyers is the meaningful part.
Separately, Ocean Power Technologies( NYSE:OPTT ) said it's implementing Palantir Foundry through the Palantir for Builders program, with CEO Philipp Stratmann citing the platform as support for the company's autonomous maritime deployments. Ocean Power Technologies stock is up 3% to $0.18 in response. In a separate personal item, Palantir CEO Alex Karp became the first major investor in a new defense-technology venture founded by Ukraine's former defense minister Mykhailo Fedorov, with Palantir itself not named as an investor and no terms disclosed.
The move can be read as a rebuke to Michael Burry, who renewed his short thesis and called Palantir "a consultant riding a bubble of AI FOMO demand." Burry warned that Palantir's market capitalization could fall below $100 billion, a level well beneath its current standing. His argument is that valuation and customer receivables quality have decoupled from the underlying business (we wrote a free handbook on riding a mania without giving back the gains, here).
Burry cited accounts receivable climbing to $1.49 billion from $1.04 billion at the end of 2025. He flagged that one customer accounted for 27% of receivables despite no single customer generating more than 10% of revenue, according to Scion Asset Management.
Sector Breadth Backs the Move
The rally has real peer breadth. ServiceNow's most recent quarter showed subscription revenue of $3.88 billion, up 24.5% year over year, with agentic deployments increasing ninefold in nine months. CEO Bill McDermott said ServiceNow AI annual contract value (ACV) crossed $1 billion, and management is tracking ahead of its 2030 AI target.
Salesforce's most recent quarter reinforced the same story. Its Q2 FY27 results showed Agentforce annual recurring revenue (ARR) exceeding $1.5 billion, and current remaining performance obligation (cRPO) reached $33.5 billion, up 14%. CEO Marc Benioff stated "AI is delivering value across every layer of our platform... ARR about to cross $4 billion."
The guidance backs the enthusiasm. ServiceNow raised its FY 2026 subscription revenue guidance to $15.76 billion to $15.78 billion. Salesforce lifted its FY27 revenue guidance to $46.1 billion to $46.4 billion, and both companies argue that AI increases usage on their platforms rather than cannibalizing seats.
What to Watch Next
Palantir's own fundamentals push back on the harshest read of the short case. The company reported Q2 revenue of $1.935 billion, up 93% year over year, and raised its full-year outlook to $8.15 billion. Even after today's gain, Palantir stock was down 5% year to date through the prior close, so today's move reads as recovery inside an ongoing drawdown.
Two things can shape whether this rally sticks. First is revenue attribution, since neither the PwC alliance nor the Ocean Power Technologies deployment carries a disclosed contract value, and Alex Karp's role in Mykhailo Fedorov's defense venture sits with him personally rather than with Palantir. Second, the receivables quality question Michael Burry raised isn't resolved by a single session and can resurface on the next disclosure.
For investors sizing their exposure to enterprise AI names, share positions should reflect that Palantir stock trades at a P/E ratio of 239.9x and that today's catalyst carries no disclosed revenue contribution. The next scheduled event of note is Salesforce's Investor Day at Dreamforce on September 16, which can extend or complicate the current read on agentic AI monetization. Between now and then, the sector's willingness to sustain today's move is the real test for the enterprise AI bull case.
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