Palantir stock drops 10% after report Trump administration eyes large defense budget cuts
Published On Feb 19, 2025, 4:40 PM
Palantir Technologies' stock fell by 10% following a report indicating that the Trump administration is planning significant defense budget cuts over the next five years. Defense Secretary Pete Hegseth mentioned in a memo that the Pentagon should aim to cut its budget by 8% annually. Since a large portion of Palantir's revenue comes from government contracts, particularly with the Department of Defense, this news has raised concerns about the future of their business prospects. Despite this decline, the stock had performed well in 2025, having risen over 48% year-to-date prior to this drop.
Stock Forecasts
PLTR
Negative
Given the information regarding impending defense budget cuts, which directly impacts Palantir's revenue sources, we can expect continued pressure on the stock in the short term. Investors should watch for further developments and any company responses regarding these cuts, as they will be crucial for understanding the future trajectory of the stock.
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