Palantir shares plunge on news of Pentagon budget cuts order
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Palantir shares dropped by 12% following news of potential Pentagon budget cuts. The U.S. defense budget may be reduced by 8% annually over the next five years, impacting companies like Palantir that rely on defense contracts.
February 19, 2025 | 9:30 pm
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Palantir's stock fell by 12% due to news of potential Pentagon budget cuts. The U.S. defense budget may be reduced by 8% annually over the next five years, which could significantly impact Palantir's revenue from defense contracts.
Palantir is heavily reliant on defense contracts, and a reduction in the U.S. defense budget by 8% annually could lead to decreased revenues for the company. The immediate 12% drop in share price reflects investor concerns about future earnings.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100