Palantir stock drops 10% after report Trump administration is eyeing large defense budget cuts
Published On Feb 20, 2025, 10:20 AM
Palantir Technologies' stock fell by 10% after a report stating that the Trump administration has instructed the Pentagon to prepare for substantial defense budget cuts over the next five years. This news raises concerns about Palantir's revenue potential, as a significant portion of its income comes from government contracts, particularly from the Department of Defense. While the market reacted negatively, analyst Dan Ives from Wedbush remains optimistic, suggesting that Palantir's unique software capabilities could enable them to secure more budget dollars at the Pentagon despite the expected cuts.
Stock Forecasts
PLTR
Negative
The report of impending defense budget cuts casts a shadow over Palantir's future revenues from government contracts, likely leading to continued stock volatility. However, if the company can effectively maneuver through this landscape and secure contracts, it could stabilize and possibly recover in the long run. Yet, in the short term, further declines seem probable as investor sentiment remains cautious.
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Palantir stock drops 10% after report Trump administration eyes large defense budget cuts
Feb 19, 2025, 4:40 PM
Palantir stock fell more than 10% Wednesday following a report the Trump administration is planning deep cuts to the defense budget.