Co-founder and CEO of Palantir Alex Karp participates in meetings at the US Capitol in Washington, USA, October 18, 2023.
Jonathan Ernst | Reuters
Price of shares of Palantir fell for as much as 12.5% on Wednesday after the news that executive director Alex Karp adopted a new stock trading plan of ia report That the pentagon has been ordered to prepare to reduce the US defense budget by 8% each year in the next five years.
Palantir is best known for the employment contract software and technological services for defense agencies.
Tuesday night, Palantir Ua regulatory submission He discovered that Karp’s new plan would allow him to sell almost 10 million shares of the company shares in the next six months.
Washington Post Said the Defense Minister on Wednesday Pete Hegsetth He ordered the high leaders of Pentagon and other military brass to develop plans to reduce the budget for defense over the next half decades. The budget for the current fiscal year is about $ 850 billion.
The post reported that Hegsetth ordered the proposed cuts to be contained until Monday.
Palantir closed trading on Wednesday from $ 112.06 per share Wednesday, a 10%fall. The shares have fallen by more than 1.5% in the after -time shop.
The company, whose market capitalization brought $ 255 billion in early February, reported to $ 828 million in revenue in the fourth quarter of 2024, with an adapted earning of 14 cents per share.
Prior to the rapid fall on Wednesday, Palantir has been one of the best supplies in the United States in the last two years, including shares’ growth prices of almost 50% in the year.
Palantir traded in the price and earning ratio of almost 600 to 1.
Trump’s administration has participated in a wide effort to reduce state consumption and the number of workers of the Federal Government, from the President, from the President Donald Trump He is inaugurated on the second former mandate on January 20th.
Trump has appointed Tesla Elona Men’s CEO to oversee this effort, called the “Government Efficiency Department.”
Musk and Trump caught fire because of their methods in achieving Doge’s goal, with some steps successfully challenged in the Federal Court.
Karp, who faced a company with Peter Thiela, defended Musk during the CNBC appearance “Squawk Box.”
“What a progressive left should do is:” Ok, Elon, you are obviously the most qualified person in the world to do something like that. We want dialogue with you about what you do, how you do, “Karp said.
“I don’t believe that happened,” he added.
