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Takeaways
- Palantir's shares surged Monday as tech stocks rallied to start the week.
- Palantir’s stock has dropped from the record levels it reached last month. Some analysts have called this a chance.
- 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’s (PLTR) stock jumped Monday, amid a broader rally in tech stocks as the week opened.
The Nasdaq, which is dominated by tech stocks, was up 1.9% on Monday morning amid reports the Trump administration may be considering a narrowing of the scope of tariffs that will be announced on April 2nd. Bloomberg and The Wall Street Journal both reported that the Trump administration is considering limiting the scope of the tariffs set to be announced on April 2.
Palantir stock reached a number record highs in February, with a peak of $124.62 at the close on that day. The software maker’s stock fell in the weeks following amid concerns that the Trump Administration’s focus on reducing government spending would negatively impact contractors such as Palantir.
Analysts have suggested buying the stock at its recent low. Some argue that government spending cuts may actually help Palantir, as the company’s artificial-intelligence products could aid in cost-cutting.
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 shares rose 5% on Monday. They are now worth nearly four times what they were 12 months ago.
