Palantir Stock Faces 17% Drop Amid CEO Share Sale Plans

Palantir Technologies (NASDAQ:PLTR) has faced a significant decline in its stock, dropping approximately 17% after CEO Alex Karp announced plans to sell nearly $1 billion in shares by September 2025. This downturn is compounded by potential cuts to the U.S. defense budget, which could impact Palantir's revenue, as 42% of it comes from government contracts. Despite this, some analysts remain optimistic, with Wedbush maintaining an Outperform rating and a $120 price target, citing Palantir's strong position in the AI sector. Conversely, Jefferies holds a more cautious view with an Underperform rating at $60, pointing to concerns over international revenue and budget cuts. The company's recent investments in advanced AI technologies, such as a partnership with Shield AI, and a focus on the growing Big Data market, are viewed as potential growth drivers. Overall, while Palantir's stock faces volatility, its strategic focus on AI innovation may provide long-term opportunities.