Trump Praises Palantir as Stock Falls 14% in Worst Week
Original: U.S President praises Palantir as the stock plunged 14% for its worst week in over a year and Iran conflict drags on
Why This Matters
Government defense contracts and political ties significantly influence Palantir's valuation and operations amid geopolitical tensions.
U.S. President Donald Trump praised Palantir Technologies on Friday via Truth Social, highlighting the company's military capabilities, as the stock plunged 14% for its worst week in over a year amid ongoing Iran conflict.
President Donald Trump posted on Truth Social Friday praising Palantir Technologies, stating the company has "proven to have great war fighting capabilities and equipment." This endorsement came as Palantir's stock experienced a 14% decline, marking its worst week in over a year. The U.S. military is reportedly using Palantir's AI-powered Maven Smart System platform to identify targets in the Middle East, connected to strikes on Iran that began in late February. Palantir derives more than half of its U.S. revenue from government contracts, including work with the Pentagon and Immigration and Customs Enforcement. CEO Alex Karp has vocally supported America's military and the Trump administration despite earlier criticism of Trump and donations to President Biden's campaign. Karp has consistently defended Palantir against criticism regarding surveillance tools used on immigrants and Americans. His public support for Israel following the October 7 Hamas attack led some employees to leave the company. In October 2025, Palantir communications chief Lisa Gordon described the company's political alignment with the Trump administration as "concerning" in an interview that was subsequently removed from social media. Short seller Michael Burry targeted the stock again this week.