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We recently compiled a list of the 10 Stocks Plummet on Wednesday. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against the other stocks.
The stock market ended firmer on Wednesday, with all major indices finishing in the green territory as investors weighed news of President Donald Trump’s imposition of a new round of tariffs while digesting minutes of the Federal Reserve.
The Dow Jones rose by 0.16 percent, the S&P 500 increased by 0.24 percent, while the tech-heavy Nasdaq eked out a 0.07 percent gain.
Ten companies bucked a broader market optimism, posting heavy losses, mostly due to disappointing earnings performance last year.
To come up with Wednesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A software engineer manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NASDAQ:PLTR)
Palantir Technologies Inc. (NASDAQ:PLTR) shares fell by 10.08 percent on Wednesday to close at $112.06 apiece as investors unloaded portfolios after the Pentagon announced cuts to its budget, triggering concerns about its impact on the company, being one of the government agency’s major contractors.
On Wednesday, Defense Secretary Pete Hegseth ordered Pentagon officials to slash the defense budget by 8 percent annually over the next five years.
The move took a toll on Palantir Technologies Inc. (NASDAQ:PLTR), which sources 40 percent of its revenues from US government agencies, including the US Army.
Apart from Palantir Technologies Inc. (NASDAQ:PLTR), other government contractors also saw share prices drop, including Northrop Grumman, Booz Allen Hamilton, and L3 Harris.
Additionally, PLTR CEO Alex Karp said late Tuesday that the company has adopted a new trading plan to sell up to 9.98 million shares until September 12.
Overall PLTR ranks 8th on our list of the stocks that plummeted on Wednesday. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.