Palantir shares dropped 10% due to concerns over potential US military budget cuts. The US Defense Secretary’s order for budget cuts sparked investor worries. Palantir, a major US defense contractor, saw its stock fall to $112.06, ending a four-day winning streak. The company’s stock had surged 65% this year before Wednesday’s decline. Palantir reported $827.5 million in Q4 revenue, surpassing expectations. However, reports indicated that Defense Secretary Pete Hegseth ordered the Pentagon to identify $50 billion in potential cuts. Additionally, Palantir’s CEO Alex Karp plans to sell up to 10 million shares. Analysts have expressed concerns about Palantir’s valuation despite solid results. The US government accounts for about 42% of Palantir’s revenue, making budget cuts particularly impactful. Jefferies analysts raised concerns about Palantir’s investment in AI opportunities, maintaining an underperform rating with a $60 price target. — news from Markets Insider
