PLTR Tanking Overnite (Patreon)

Palantir’s stock fell more than 10% during the final hour of regular trading on February 19, 2025, and continued to slide in after-hours trading.

This drop is primarily attributed to a Washington Post report stating that the Trump administration, through Defense Secretary Pete Hegseth, has directed the Pentagon to plan for significant budget cuts—specifically an 8% annual reduction in the U.S. defense budget over the next five years. These cuts will amount to tens of billions of dollars, potentially impacting military contractors like Palantir, which derive nearly half of their REVENUE from U.S. government contracts, a ton of those contracts are with the Pentagon and other defense-related agencies.

This is also known as the DOGE effect.