Why Palantir Technologies Inc. (PLTR) Went Down On Monday?

We recently published a list of 10 Stocks Drop The Most Amid Investor Caution. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other stocks that drop the most amid investor caution.

Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.

The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.

Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.

To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Note that the companies we covered in-depth last Friday have been excluded from the list.

A software engineer manipulating a vast network of code on virtual monitors.

Palantir Technologies Inc. (NASDAQ:PLTR)

Palantir Technologies extended its losing streak for the fourth day on Monday to finish at $90.68 apiece as investor caution continued to linger following a budget cut in the Department of Defense that could impact the company’s business.

Last Wednesday, Defense Secretary Pete Hegseth ordered Pentagon officials to slash the defense budget by 8 percent annually over the next five years, following an order from President Donald Trump.

The move took a hit on PLTR, which currently sources 40 percent of its revenues from US government agencies, including the US Army.

Apart from PLTR, the news also took a toll on other government contractors, namely Northrop Grumman, Booz Allen Hamilton, and L3 Harris.

Additionally, PLTR CEO Alex Karp said last week that the company has adopted a new trading plan to sell up to 9.98 million shares until September.

Overall, PLTR ranks 2nd on our list of stocks that drop the most amid investor caution. While we acknowledge the potential of PTLR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.