Palantir Stock Sinks After Report Trump Administration Is Eyeing Large Defense Budget Cuts
Palantir stock fell more than 5% Thursday, adding to its 10% drop the prior day, following a report the Trump administration is planning deep cuts to the defense budget. The company's revenue has been largely driven by global government contracts, which would be impacted by such cuts. Palantir makes AI software used for surveillance by the US government and has seen significant growth in recent years.
- The potential impact on Palantir's business model highlights the risks associated with relying on a single customer segment, in this case, the US government, and underscores the need for diversification to mitigate such risks.
- How will Palantir adapt its strategy to remain competitive if the Trump administration indeed implements significant defense budget cuts that affect its primary source of revenue?