Palantir Stock Drops Another 5% After Plunging 10% on CEO Share Sale Plan, Possible DOD Budget Cut

Tiger Newspress02-20

Palantir shares fell 10% on Wednesday, and continued to slide 5% in premarket trading on Thursday, following the news that CEO Alex Karp planned to sell more than $1 billion worth of his shares and that the Pentagon was considering budget cuts over the next five years.

Palantir disclosed that Karp's new trading plan provides for a sale of up to 48.9 million shares, which could be worth up to $1.23 billion, according to Barron's. Palantir reported the change in a Tuesday filing with the Securities and Exchange Commission.

In another development, Defense Secretary Pete Hegseth reportedly wants senior Pentagon leaders and other top military officials to come up with a plan to cut the defense budget over the next five years, according to the Washington Post.

Palantir, which has seen its stock soar by almost 50% this year, is a major US defense contractor. It also sells technology and artificial intelligence products to other allied governments and private companies.

Palantir's stock plunge ended a four-day winning streak. It also underscored the data analytics company's reliance on government and defense spending.

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Comments

  • UTOtrader
    02-20
    UTOtrader
    He sell We buy
  • ISD Investments
    02-20
    ISD Investments
    Looks like it's on its way back up again. Which is great news.
  • Merdeka1981
    02-20
    Merdeka1981
    Here's where everyone should take out their wallets and prepare to start buying when the price is right. It's not so often that you get to buy something this awesome at a straight off 15% discount.
  • Merdeka1981
    02-20
    Merdeka1981
    Here's where everyone should take out their wallets and prepare to start buying when the price is right. It's not so often that you get to buy something this awesome at a straight off 15% discount.
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