Software company Palantir Technologies’ stock swiftly fell Wednesday afternoon after The Washington Post reported the Pentagon is preparing for defense budget cuts that must be drafted by Feb. 24, prompting concerns the cuts could impact the major defense contractor.
Palantir shares fell as low as 12% Wednesday. (Photo by FABRICE COFFRINI/AFP via Getty Images)
Palantir shares had fallen 12% around 3:50 p.m. EST before closing down 10% at $112.06, erasing nearly two weeks of gains from the software company.
The slump materialized after the Post reported Defense Secretary Pete Hegseth ordered Pentagon and U.S. military leaders to create budget cut plans to slash 8% from the defense budget in each of the next five years, with the Post citing unnamed officials familiar with the matter and a memo it reviewed.
Palantir’s stock price was largely unchanged in intraday trading before the news was reported, with the stock even up slightly in the late morning.
The cut proposals will have to be drawn up by Feb. 24, according to the memo seen by the Post, exempting certain categories including southern border operations, nuclear weapons, one-way attack drones and missile defense.
This is a developing story. Check back for updates.