Following a report last week that the Trump administration ordered the Pentagon to reduce the U.S. defense budget, Palantir Technologies’ stock fell sharply on Monday, continuing its losses. The article sparked concerns that Palantir, a U.S. military contractor, would suffer consequences. After reaching a record high the day before, Palantir’s stock has dropped almost 25% since the news on Wednesday.
Following a report last week that the Trump administration ordered the Pentagon to make significant cutbacks to the U.S. military budget, Palantir Technologies’ (PLTR) stock fell sharply on Monday, continuing its losses.
The business experienced the most significant decline on the S&P 500 when its shares fell more than 10%. After hitting a record high just a day ago, the stock of the data analytics software business has lost about 25% of its value since The Washington Post’s article on Wednesday.
According to reports, Pentagon personnel were instructed by Defense Secretary Pete Hegseth to reduce the U.S. defense budget by 8% a year for the following five years. That sparked concerns that Palantir, a U.S. military contractor, may suffer.
Some analysts, such as those from Wedbush and Loop Capital, have subsequently speculated that the selloff would be a chance to purchase the dip, anticipating that Palantir might gain from initiatives to simplify operations in a more frugal expenditure climate. Palantir has nearly doubled in value over the last 12 months, but shares are deep into the correction zone since Tuesday’s record high.
