From Nasdaq: 2025-02-23 21:38:00

1. Palantir Technologies (NASDAQ: PLTR) shares tumbled after Defense Secretary Pete Hegseth ordered an 8% budget cut at the Pentagon, impacting Palantir’s largest customer – the government. The White House plans to reduce the DoD’s budget by 8% annually for the next five years, potentially affecting Palantir’s growth prospects.
2. Palantir CEO Alex Karp has adopted a new Rule 10b5-1 plan to sell company shares, with plans to sell nearly 10 million shares by mid-September. The company’s AI solutions have seen growth in government revenue, but uncertainty looms with potential defense spending cuts.
3. Palantir has attracted commercial customers with its AI platform, showing promise for growth. However, concerns over valuation persist, with the stock trading at a high forward P/S multiple of 62 times estimated 2025 revenue.
4. With uncertainty surrounding DoD budget cuts, investors face a decision on whether to buy the dip or stay on the sidelines. Palantir’s potential risks need careful consideration given its current valuation and market conditions.

Read more at Nasdaq: Palantir Sinks on Planned Pentagon Budget Cuts. Is It Time to Sell the Stock?