Palantir falls in response to the funds report of the Pentagon funds, Karp gross sales plan

The co-founder and CEO of Palantir, Alex Karp, attended the meetings in the US Capitol meetings in Washington on October 18, 2023.

Jonathan Ernst | Reuters

The share price of Palantir It fell by 12.5% ​​on Wednesday after the news that CEO Alex Karp had accepted a new stock trading plan, and a report that the Pentagon was prepared for preparation of the US defense budget by 8% per year in the next five years .

Palantir is best known for his contractual work, which offers software and technology services for defense agencies.

On Tuesday evening, Palantir announced in a regulatory registration that Karps Neuer Plan will enable him to sell almost 10 million shares in the company shares over the next six months.

Washington Post said on Wednesday that Defense Minister Pete Hegseth had arranged high -ranking Pentagon leaders and other military brass to develop plans to reduce the defense budget in the next half decade. The budget for the current financial year is around 850 billion US dollars.

Post reported that Hegseth ordered the proposed cuts by Monday.

Palantir closed the trade on Wednesday with $ 112.06 per share, a decrease of 10%. The stocks declined by more than 1.5% in the trade with After-Hours.

The company, whose market capitalization extends $ 255 billion, generated sales of $ 828 million in the fourth quarter of 2024 with an adjusted profit of 14 cents per share in the fourth quarter of 2024.

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Before the abrupt decline of Wednesday, Palantir has been one of the best stocks in the USA in the past two years, including an increase in stock price of almost 50% in the previous year.

Palantir is at a price-performance ratio of almost 600 to 1.

The Trump administration has exhausted itself far to reduce government expenditure and the number of employees of the federal government, since President Donald Trump was inaugurated for a second term that was not successive on January 20.

Trump appointed Tesla CEO Elon Musk to monitor these efforts and described the “Department of Government Efficiency”.

Musk and Trump are under fire because of their methods to achieve DOGE's goal, with a few steps before the Federal Supreme Court successfully questioned.

On Tuesday, Karp, who co -founded the company with Peter Thiel, defended Musk during an appearance in CNBCS “Squawk Box”.

“What the progressive links should do is to say: 'Ok, Elon, you are clearly the most qualified person in the world to do something like this. We want a dialogue with them about what they are doing,' said Karp.

“I don't think that happened,” he added.