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Palantir Technologies shares plunged Monday, extending losses following a report last week that the Trump administration directed the Pentagon to trim the U.S. defense budget.
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The report raised worries Palantir could be negatively impacted as a contractor for the U.S. military.
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Shares of Palantir have lost about a quarter of their value since the report Wednesday, after hitting a record high a day earlier.
Palantir Technologies (PLTR) shares plunged Monday, extending losses following a report last week that the Trump administration directed the Pentagon to make significant cuts to the U.S. defense budget.
The company’s stock dropped nearly 8% intraday, making it the leading decliner on the S&P 500. The data analytics software company’s stock has lost about quarter of its value since The Washington Post's report Wednesday—coming off a record high just a day earlier.
Defense Secretary Pete Hegseth reportedly ordered Pentagon officials to cut the U.S. defense budget by 8% annually for the next five years. That raised worries Palantir could be negatively impacted as a contractor for the U.S. military.
Some analysts, including those from Wedbush and Loop Capital, have since suggested the selloff could present an opportunity to buy the dip, expecting Palantir may instead benefit from efforts to streamline operations in a tighter spending environment.
Shares of Palantir are well into correction territory since Tuesday’s record high, but the stock has roughly quadrupled in value over the past 12 months.
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