Palantir (PLTR) shares extend recent losses as the Trump administration cuts federal spending with plans to cut the military budget and as Palantir CEO Alex Karp plans to sell around $1.2 billion in stock by September.
William Blair industrials research analyst Louie DiPalma joins Market Domination with Julie Hyman and Alexandra Canal to break down why exactly recent headlines are rattling Palantir investors.
"What does the Department of Defense budget and Pete Hegseth and DOGE mean for Palantir? It relates to how approximately 55% of revenue is derived from government customers, and the majority of that government revenue comes from the US government … [and] within the US government revenue, the vast majority comes from the US Army specifically," the analyst outlines.
"There are questions such that, in the new Trump regime, is this program going to start on time, and is there going to be adequate funding?" DiPalma adds.
The analyst highlights the uncertainty about the actual impact of the second Trump administration as conflicting information comes out of the White House. Overall, DiPalma says, "There seems to be strong support to continue increasing the defense budget, but headlines right now are driving a lot of the market moves."
Watch the video above to hear why DiPalma is bearish on Palantir despite his bullish outlook for defense spending under Trump 2.0.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
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