In This Article:
Palantir (PLTR) stock is tumbling 8% today. The downturn comes after the Trump administration fired three top military leaders on Friday night. Moreover, on Thursday night Defense Secretary Pete Hegseth confirmed that the Pentagon would reduce its spending in the upcoming fiscal year by 8%. But the defense secretary did add that all the savings would be reinvested in an effort to better support the top priorities of President Donald Trump. Three Leading Military Figures Were Fired Trump fired the former Chairman of the Joint Chiefs of Staff, Charles Q. Brown on Friday night. A short time later, Hegseth dismissed the former head of the Navy, Admiral Lisa Franchetti, and fired Gen. James Slife, the former vice chair of the Air Force.
Hegseth Confirms Spending Reductions Hegseth stated that the Trump administration would reduce the Pentagon's budget by $50 billion versus the blueprint put forward by the Biden administration. However, the defense secretary added that "We’re asking the services to plan. It’s not a cut. It’s refocusing and reinvesting existing funds into building a force that protects you, the American people.” While we acknowledge the potential of PLTR, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.