Why Palantir Stock Plummeted Today
Shares of Palantir Technologies (NASDAQ: PLTR) fell on Wednesday. The company's stock lost 10.1% as of market close and lost as much as 12.9% earlier in the day. The drop comes as the S 500 (SNPINDEX: ^GSPC) gained 0.2%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was flat.
Palantir's stock was hit hard by news that the Trump administration intends to cut defense spending, as well as news that CEO Alex Karp was selling $1.1 billion in stock.
The Trump administration has ordered the Pentagon to cut its budget by 8% each year for the next five years, according to a report by the Washington Post. Defense Secretary Pete Hegseth has ordered senior leadership to craft a plan to do so by Feb. 24. The order contains certain spending categories off-limits for reductions, like border security and missile defense.
Source Fool.com
