In a 30% Drawdown, What's Going On With Palantir Stock?

After the U.S. presidential election, Palantir Technologies (NASDAQ: PLTR) stock soared about 200%. But since hitting its all-time high on Feb. 19, the stock is down over 30%. The artificial intelligence (AI) company is growing quickly, but due to its reliance on government contracts, investors are worried that potential budget cuts at the Department of Defense and other government agencies could hurt the business. Despite the drawdown, Palantir is still valued at over $195 billion.What's going on with Palantir stock? Is now a good time to buy the dip? Let's take a closer look at this software upstart and see how the stock could fit into your portfolio.The Trump administration has come out swinging with its cost-cutting initiatives at the federal government. The focus has now shifted to the Department of Defense and its $850 billion annual budget, one of the government's largest outlays each year. New Secretary of Defense Pete Hegseth said he aims to cut 8% from the defense budget every year for the next five years. That is not a one-time cut of 8% but five consecutive years of cuts.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool