What's Going On With Palantir Technologies Shares

Palantir Technologies Inc PLTR shares are trading lower by 7.9% to $18.41 Wednesday afternoon. Shares of software stocks are trading lower after Fitch downgraded the long-term credit rating of the United States. This has weighed on market sentiment and pressured growth sectors.

Palantir provides data analysis and software solutions, and a substantial portion of its revenue comes from government contracts. A credit rating downgrade of the U.S. government might raise concerns about the stability and continuity of these contracts, leading investors to reassess Palantir's growth prospects and financial performance.

See Also: What's Going On With Intel Shares?

As a tech company, Palantir also relies on access to capital for research, development and expansion. A downgrade of the U.S. credit rating could result in higher interest rates across the financial markets, making it more expensive for Palantir to raise funds through debt offerings or issue new shares. This may impact its capital allocation and investment plans.

What Happened With Fitch?

In a move that sent shockwaves through global markets, Fitch Ratings downgraded the United States’ sovereign credit grade from AAA to AA+. This downgrade, echoing a move by S&P Global more than a decade ago, comes as a result of several concerning factors affecting the nation’s fiscal management...Read More

According to data from Benzinga Pro, PLTR has a 52-week high of $20.24 and a 52-week low of $5.92.