Palantir Stock Plummets 11% Following Insider Sales and Defense Budget Concerns
The software company's shares have dropped over 35% from recent highs, with insider sell-offs and potential U.S. defense cuts driving investor unease.
- Palantir shares fell 11% on Thursday, marking the worst performance in the S&P 500 and contributing to a broader tech sell-off that pushed the Nasdaq into correction territory.
- CEO Alex Karp has sold $45 million in stock in the past two weeks and $2 billion in 2024, reducing his stake by 21%, with other key executives also offloading significant holdings.
- The U.S. Department of Defense is reportedly planning an 8% annual budget reduction over the next five years, posing a major risk to Palantir, which heavily relies on government contracts for revenue.
- Palantir's stock has dropped more than 35% since its February 18 high of $125.41, with retail investors losing confidence as insider sales and external pressures mount.
- The company's reliance on its top three customers, which accounted for 17% of its 2024 revenue, and slower workforce growth have raised additional concerns about its long-term growth prospects.
Sherwood News 
Wall Street Pit 