The stock of Palant (PLT) is hammered, down almost 6% on Monday, as fears of more than $ 50 billion in potential American defense cuts and an assessment of the PLTr action of 150x Sky-Hauts collided with a macro volatile backdrop. The result? Investors present themselves on the coverage.
PLTR falls ahead of the price shock
Palantant actions fell 5.9% to $ 80.79 on Monday. This extended a rough five -day sequence. The Seloff came from Wall Street Bisse for April 2, nicknamed “Liberation Day”, when President Donald Trump should announce radical prices. While the entire technological sector took a hit, Sharp Drop of Palantir has exceeded the S&P 500 and the Nasdaq, which both closed below.
Morgan Stanley Flags risk of the government
Morgan Stanley (MS) analysts were already blinning warning panels at the end of last week. The firm said Palantant could face the downward revisions thanks to its unusual exposure to American federal contracts. Government’s revenues represented $ 1.2 billion $ 1.9 billion US dollars in 2024 – so that all discounts in public sector spending was particularly hardly affected.
This risk increased in February when the Pentagon was invited to identify $ 50 billion in potential cuts. He has an additional pressure to a stock that already vacillates under macro uncertainty.
The evaluation of PLTr actions is extended to the trembling market
The Palanut Price / Price / Price ratio is nearly 150 – about seven times the average 20x of the S&P 500. This could fly in a frothy bull market, but in today’s environment? Not so much. The stock also transports a beta version of 1.8, which placed it among the most volatile names in the index – on Tesla (TSLA).
Investors are running out of high -risk technology
This last decline is part of a wider rotation. Investors sensitive to risks are leaving growth names at high beta and in more stable software players such as Fortinet (FTNT), Intuit (Intu) and Palo Alto Networks (PANW). Morgan Stanley specifically cited a “change of tone” of the optimism of the fourth quarter to renewed prudence.
Beyond Palantir, the wider software sector feels the pressure. Trade tensions, increase in returns and concerns about global IT expenses are accumulating. In a stability of market thirst, the volatility and the dependence of palanting towards the dollars of the government could be too stomach at the moment.
Is Palantir a good stock to buy?
Analysts remain divided on PLTR actions, with a consensus note according to four purchases, 10 taken and four sales. In the past year, the PLTT has increased by more than 250%, and the average PLT price target of $ 92.13 implies an increase of 13% compared to current levels.
See more PLTR analyst notes
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