Shares of Palantir Technologies Inc. (NYSE: PLTR) have climbed 29.45% year-to-date, defying recent market volatility and concerns over defense budget cuts. The data analytics company, known for its government contracts in intelligence gathering, counterterrorism, and military operations, continues to gain investor confidence.
🚀 Stock Fills the Gap After February Decline
After a sharp surge in early February, Palantir’s stock pulled back, filling the technical gap it created. According to Kenny Polcari, chief market strategist at Slatestone Wealth, this is a healthy technical move.
“You always want to see a stock fill the gap that it created, whether it’s on the downside or the upside. You want to see it come back, fill it, and test — which is exactly what PLTR did,” Polcari explained.
💡 Challenges Didn’t Derail Momentum
Despite the stock’s impressive YTD performance, Palantir faced two major hurdles in February:
- Defense Budget Cuts: President Donald Trump directed an 8% annual reduction in the U.S. defense budget over the next five years. The order, implemented by Defense Secretary Pete Hegseth, sparked concerns about future government contracts, a major revenue stream for Palantir.
- CEO Share Sale Plan: Palantir’s CEO Alex Karp announced his intention to sell up to 9.98 million shares by September, which temporarily pressured the stock price.
🔥 Analyst: “I Wouldn’t Be a Seller”
Despite these headwinds, Polcari remains bullish.
“PLTR’s going to be a name that’s going to play a significant role in the global economy and AI for a long time,” he said, adding, “I wouldn’t be a seller of this name.”
🌍 AI and Global Influence Keep Palantir Attractive
Palantir’s growing presence in artificial intelligence-driven defense solutions and its expanding commercial client base continue to fuel optimism. The company’s ability to navigate geopolitical uncertainties and maintain strong government partnerships makes it a long-term growth play, according to market experts.
âś… Key Takeaway for Investors
- Current Trend: PLTR shares are up nearly 30% in 2025, showing resilience.
- Analyst Sentiment: Experts see long-term growth potential, urging investors to hold rather than sell.
- AI-Driven Future: Palantir’s role in AI and data analytics makes it a key player in the evolving tech landscape.
Investors betting on AI-driven defense and intelligence solutions continue to see Palantir as a strategic, long-term holding, despite near-term uncertainties.
