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Palantir (PLTR) has undoubtedly been a shining star of the artificial intelligence (AI) boom, delivering jaw-dropping returns of nearly 955% over the past two years. From powering military operations and supply chains to fighting fraud and enhancing healthcare, Palantir’s AI software has become a game-changer, with strategic deals inked with tech titans like Amazon (AMZN), Meta (META), and Microsoft (MSFT). But after an epic rally, the tech darling’s meteoric rise has finally hit turbulence. Two storm clouds have rolled in this month, rattling investors' confidence.
The first is CEO Alex Karp’s newly filed Rule 10b5-1 trading plan, which outlines his intention to sell nearly 10 million shares. Such a move, especially following a massive rally, can signal caution. The second blow comes from Defense Secretary Peter Hegseth’s proposal to slash the U.S. defense budget by 8% over five years, threatening a vital revenue stream for Palantir. The company built its name on providing advanced software to defense and intelligence agencies before expanding into enterprise data and AI solutions, and reduced government spending could directly hit its financials.
