- Spending cuts at the Pentagon and in defense has sent Palantir’s stock plunging over the past week. Still, several analysts and market watchers believe DOGE’s emphasis on using tech to find efficiencies will be a long-term tailwind for the government contractor. The modern-day Manhattan Project around AI that Karp is calling for would also likely boost the company’s shares.
Believers in AI software darling and government contractor Palantir have had plenty to cheer about since the start of last year. Even after last week’s stock-price slide, which continued Monday, the stock is up roughly 500% since last January after being the S&P 500’s top performer in 2024. There’s no getting around a basic fact, however: The stock is mind-bogglingly expensive, at least by most traditional metrics.
