Palantir Stock Leads S&P 500 Decliners Monday Amid Defense Spending Cut Concerns

Key Takeaways

Palantir Technologies (

PLTR

) shares plunged Monday, extending losses following a report last week that the Trump administration directed the Pentagon to make
significant cuts
to the U.S. defense budget.

The company’s stock dropped over 10%, making it the leading decliner on the
S&P 500
. The data analytics software company’s stock has lost more than a quarter of its value since

The


Washington Post’s

report Wednesday—coming off a record high just a day earlier.

Defense Secretary Pete Hegseth reportedly ordered Pentagon officials to cut the U.S. defense budget by 8% annually for the next five years. That raised worries Palantir could be negatively impacted as a contractor for the U.S. military.

Some analysts, including those from
Wedbush and Loop Capital
, have since suggested the selloff could present an opportunity to
buy the dip
, expecting Palantir may instead benefit from efforts to streamline operations in a tighter spending environment.

Shares of Palantir are well into
correction
territory since Tuesday’s record high, but the stock has
roughly quadrupled
in value over the past 12 months.

UPDATE—Feb. 24, 2025: This article has been updated since it was first published to reflect more recent share price values.

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