Palantir Technologies shares dropped 10% on Wednesday following reports of potential US military budget cuts. The decline continued in after-hours trading, with shares falling another 5.2%. This ended a four-day winning streak for Palantir, whose stock had surged 65% this year prior to the drop. The US Defense Secretary ordered budget cuts, with interim deputy secretary Robert Salesses stating that $50 billion in programs could be cut next year. Palantir CEO Alex Karp disclosed a new trading plan allowing him to sell up to nearly 10 million shares by September 12. Analysts expressed concerns about Palantir’s valuation despite strong results, with some questioning whether the company is investing enough in future AI opportunities. Jefferies maintains an underperform rating on Palantir with a price target of $60, significantly lower than its current share price. — news from Markets Insider
