Key Takeaways
- Palantir’s shares surged Monday as tech stocks rallied to start the week.
- Palantir has fallen from record levels reached last month and some analysts have called the drop an opportunity.
- Some analysts think government spending cuts will hurt contractors like Palantir, as others say the company’s products could be used for the cost cuts.
Palantir (PLTR) shares jumped Monday amid a broader rally among tech stocks to open the week.
The tech-heavy Nasdaq index was up 1.9% Monday morning amid reports that the Trump administration is considering narrowing the scope of the tariffs set to be announced on April 2. Reports from Bloomberg and The Wall Street Journal said that the administration may hold off on announcing sector-specific tariffs for the semiconductor and auto industry, among others.
Palantir stock set a number of record highs last month, peaking at an all-time high close of $124.62 on Feb. 18. However, the software maker’s shares moved lower in the weeks after amid concerns that the Trump administration’s focus on cutting government spending could negatively impact contractors like Palantir.
Analysts have recommended buying the stock’s recent dip, with some arguing that the government spending cuts could actually help Palantir as the company’s artificial intelligence products could aid the cost-cutting efforts.
Also on Monday, a rebalancing of the S&P indices that was announced earlier this month went into effect, with Palantir among a group of companies being added to the S&P 100.
Palantir stock was up 5% Monday, nearly four times its price 12 months ago.
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