Contrarian Opinion: President Trump's Pentagon Budget Reductions Will Benefit Palantir. Here's Why.
The Pentagon has been tasked with finding ways to cut its budget by 8% -- or $50 billion per year -- over the next five years.
For much of the last year, any time investors got news related to Palantir Technologies (NASDAQ: PLTR), that news was overwhelmingly positive. In 2024, the data analytics specialist's stock was the top performer in the S&P 500 (SNPINDEX: ^GSPC). It was also added to the Nasdaq-100 index, and institutional investors finally warmed up to a business they had previously viewed as too heavily reliant on U.S. government contracts.
However, as smart investors know, no stock can go up in a straight line forever. And Palantir just hit its first major snag in quite some time.
Over the last 10 days or so, shares of Palantir have cratered by 24%. The sell-off was linked to a series of orders out of the White House that spooked investors.
