Palantir Technologies (NASDAQ: PLTR) challenged cautious expectations in Wall Street at the beginning of 2025, which extended his wonderful lane from the previous year.
After a great increase of 340 % in 2024, making it the best performance in the S&P 500, PLTR continued its momentum, and gained another 65 % in the first two months of 2025.
The arrow reached a peak of $ 124.62 on February 18, partially driven by the company’s profit report on February 3, which led to a 23 % increase in one day. However, the momentum did not last. Since then, Palantir has decreased by 32 %, and now trading at $ 84.79.
What sparked a shrinkage in the round?
The retreat was driven by multiple factors, with the emergence of increased uncertainty on government contracts as the main concern.
Reports indicate that the Pentagon has been prepared to prepare for an 8 % annual reduction in the US defense budget over the next five years, which raised concerns about the potential cuts of government contracts, a major revenue engine for Palantir.
In addition to the pressure, the investor’s confidence took another blow after reports appeared that CEO Alex Carb had developed the stock trading plan, which allowed him to sell approximately 10 million shares during the next six months. This step has only added to the sale of pressure, making investors concern about the stability of the stock in the short term.
How much did the investment in 2025 in Baltier today?
Investors who witnessed an increase in the wonderful Palantir in 2024 in 2025 entered high expectations. A $ 1,000 investment in Paltier on January 2 at a price of $ 75.19 per share had peaked at $ 1650 during the February Rally.
However, at the current price of $ 84.22, the same investment is now about $ 1120, with 12 % profit on an annual basis.
What is the following for Palantir
Palantir Technologies expands its reach beyond government contracts, with a strong push for manufacturing and defense technology driven by artificial intelligence. CEO Alex Carb highlighted the company’s goal in enhancing American industrial competence, announcing a series of new partnerships in AIPCON In Palo Alto.
Among the main cooperation, Archer Aviation will benefit from Palantir’s artificial intelligence for road planning and air traffic control, while Saildrone starts running the independent marine ship, will use its fleet management program. Meanwhile, Epirus Inc. , Which develops anti -baron weapons, by integrating Palantir technology.
However, AI’s expansion is still in Palantir and the adoption of growing institutions in promoting upward morale, as shares increased by 244 % during the past year.
However, the real challenge lies in expanding the scope of artificial intelligence solutions in the private sector and proving its ability to generate sustainable growth in revenue. As Palantir expands through industries, investors will closely monitor to see if this momentum can maintain stock gathering.
Distinctive image via Shutterstock
