Palantir stock crashes below $100; Here's why

Core Viewpoint - Palantir's stock is experiencing significant losses, dropping below the critical $100 support level, primarily due to concerns over government contracts and insider trading activities [1][2]. Group 1: Stock Performance - As of the latest update, Palantir's stock is trading at$98.42, down over 4%, and has plunged by 20% over the past week [2]. - The stock's decline is attributed to broader market volatility and specific catalysts affecting investor sentiment [3]. Group 2: Revenue Concerns - A substantial portion of Palantir's revenue is derived from defense contracts, particularly with the Department of Defense (DoD), making it vulnerable to potential cuts in defense spending proposed by the Trump administration [4]. - The company's growth trajectory is at risk due to these budget cuts, which could impact future revenue streams [4]. Group 3: Insider Trading Activity - CEO Alex Karp's plan to sell up to $1.2 billion worth of shares has raised concerns among investors, as large insider sales are often interpreted as a lack of confidence in the company's short-term outlook [5]. Group 4: Analyst Opinions - Some analysts, such as those from Jefferies, predict a further decline in Palantir's stock price, estimating it could drop to$60 due to high valuation concerns [8]. - Analyst Brent Thill has highlighted slowing hiring growth and an imbalance in revenue growth, with U.S. revenue increasing by 38% year-over-year while international revenue stagnated at 14% [9][10]. - Conversely, analysts from Wedbush Securities and Loop Capital maintain a positive outlook, with one labeling Palantir as the 'Messi of AI' and another initiating coverage with a 'Buy' rating and a $141 price target [11].