Why Palantir Stock Is Plummeting Today

Core Viewpoint - Palantir Technologies' stock is experiencing significant declines due to budget cuts in the Pentagon, which could impact the company's government contracts [1][2][5]. Group 1: Stock Performance - Palantir's shares dropped by 8.4% as of 11:50 a.m., with an earlier decline of up to 11.9% [1]. - The stock has fallen nearly 25% since last Wednesday, indicating a volatile market response [5]. Group 2: Government Budget Cuts - The Trump Administration is pushing for substantial cuts to the Pentagon's budget, with a target reduction of 8% annually over the next five years [4]. - The Department of Defense plans to cut over 5,000 civilian jobs this week as part of a broader strategy to reduce its civilian workforce by 5% to 8% [2][3]. Group 3: Impact on Palantir - Palantir heavily relies on government contracts, particularly from the Department of Defense, making it vulnerable to these budget cuts [5]. - The potential for contract cancellations or significant reductions poses a risk to Palantir's sales growth, which is already under pressure [6].