Palantir fails to hold the line as momentum cracks

Last year’s retail trading fave Palantir tumbled alongside popular tech behemoths like Tesla and Nvidia in early trading on Monday.

The defense, data analytics, and enterprise AI software firm is on track for its fifth consecutive down day, which has lopped 15% of the shares and sunk the share price once again below its 50-day moving average, a technical level often seen as providing a modest support for share prices that it had recently cleared.

With the first hour of trading in the bag, Palantir is off its worst levels. (It was down as much as 8%.)

Palantir isn’t the only tech stock taking a beating on Monday, amid concerns about the Trump administration’s continued tariff threats as well as their effect on the economy, inflation, investor confidence, and what the Fed will do with interest rates this year.

But Palantir also has specific exposure to the Trump administration’s push to sharply reduce government spending, given that the US government is its top customer.

In a note published last week, Morgan Stanley software analysts put the company on a list of stocks “at higher risk for downward estimate revisions” because of their reliance on federal government spending.