Palantir's Unwind: Negative News Triggers Sell-Off
Palantir Technologies (PLTR) has plunged 14.45% after a series of negative news events sparked a sell-off.
Co-Founder's Trading Plan
CEO Alex Karp's announcement of a 10b5-1 trading plan for the sale of 9.975 million shares raised concerns about potential overvaluation.
Defense Spending Cuts
News of Defense Secretary Pete Hegseth's proposed 8% annual cut in defense spending for the next five years is a setback for Palantir, which relies heavily on government contracts.
Annual Report Red Flags
Palantir's annual report revealed a modest 5% headcount growth in 2024, despite a 58% stock surge this year. The resignation of the company's chief accounting officer and continued reliance on a few large customers are further concerns.
Dent in Teflon Trade
Despite strong fourth-quarter results, the negative news flow has dented the teflon trade that had characterized Palantir's stock performance in 2025.
Future Outlook
While analysts have revised EPS expectations for 2025 and 2026 upwards, the sell-off suggests the market may be questioning Palantir's valuation and growth prospects.