PLTR Stock Falls Over 7% In Monday Pre-Market: What’s Going On?

Shares of Palantir Technologies Inc. (NASDAQ:PLTR) tumbled over 7% in premarket trade on Monday after the Pentagon canceled a $280 million over-budget HR project involving Oracle Corp. (NYSE:ORCL) and Leidos Holdings Inc. (NYSE:LDOS) on Friday.
What Happened: The U.S. Department of Defense’s cancellation of Oracle’s HR software, driven by delays and cost overruns, has triggered investor anxiety about broader government tech spending cutbacks.
This concern negatively impacted Palantir’s stock, as the company relies heavily on government contracts, including those with the DoD, which recently announced an additional $580 million in budget reductions.
Apart from this, Goldman Sachs analyst Gabriela Borges maintained a neutral rating on Palantir with a price target of $80, highlighting its strong Ontology and AI platform. However, she noted concerns about potential future competition from companies developing in-house AI and Palantir’s high valuation.
See Also: Scott Bessent Has …Full story available on Benzinga.com

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