PLTR Stock Falls Over 7% In Monday Pre-Market: What's Going On?

Shares of Palantir Technologies Inc. PLTR tumbled over 7% in premarket trade on Monday after the Pentagon canceled a $280 million over-budget HR project involving Oracle Corp. ORCL and Leidos Holdings Inc. LDOS on Friday.

What Happened: The U.S. Department of Defense’s cancellation of Oracle’s HR software, driven by delays and cost overruns, has triggered investor anxiety about broader government tech spending cutbacks.

This concern negatively impacted Palantir’s stock, as the company relies heavily on government contracts, including those with the DoD, which recently announced an additional $580 million in budget reductions.

Apart from this, Goldman Sachs analyst Gabriela Borges maintained a neutral rating on Palantir with a price target of $80, highlighting its strong Ontology and AI platform. However, she noted concerns about potential future competition from companies developing in-house AI and Palantir’s high valuation.

Why It Matters: Palantir provides data analytics tools to government customers for intelligence gathering, counterterrorism, and military purposes. The stock was down 7.04% to $79.81 apiece in premarket trading.

Palantir’s stock plummeted in early February due to proposed defense budget cuts by 8% annually for five years and CEO Alex Karp‘s planned sale of up to 9.98 million shares.

PLTR's market capitalization stood at $170.18 billion as of Dec. 31, 2024, and it currently stands at $201.26 billion. This represents a growth of $31.08 billion or 18.26% on a year-to-date basis.

The stock recently joined the S&P 100 on March 24, during the S&P during its quarterly rebalancing.

Price Action: Its stock price has risen by 14.18% in 2025, whereas it has gained 275.55% over the year. However, it is still 31.54% down from its 52-week high of $125.41 apiece.

Benzinga's Edge Rankings show a strong price momentum in the medium and long term, but it is weak in the short term. Its momentum ranking was sturdy at the 98.96th percentile. Whereas, the growth ranking, which combines historical expansion in earnings and revenue across multiple periods, was also solid at the 87.14th percentile. Check out its valuation scores and other fundamentals here.

Its consensus price target was $69.57, with a ‘sell' rating, based on the 25 analysts tracked by Benzinga. The price targets ranged from a low of $7.5 to a high of $125. The latest ratings from Loop Capital and Wedbush averaged $128.67, implying a 60.97% upside.