Palantir Technologies Inc. shares plummeted sharply in Wednesday’s session, with the stock poised to extend its decline on Thursday. The sell-off is largely attributed to concerns over potential major cuts to defense spending under a new Trump administration directive. However, Wedbush analyst Dan Ives disagrees, arguing that budget cuts in the Defense Department could actually benefit Palantir.
Ives believes that despite the concerns about spending cuts, Palantir’s stock remains pricey relative to its peers in the software industry. He thinks that Pentagon budget cuts could help Palantir by increasing efficiency and reducing costs for the government, ultimately benefiting the company.
While Ives’ views are optimistic, it remains to be seen whether his assessment will hold true as investors continue to weigh the potential impact of budget cuts on Palantir’s stock performance.
Source: https://www.marketwatch.com/story/palantirs-stock-is-extending-its-big-decline-is-the-selloff-justified-a9b365a4