PLTR
New headaches, same pricey stock
Palantir spent Friday under pressure after investors got hit with a double dose of government-contract headaches. In the U.S., the company is reportedly challenging the Pentagon’s Defense Intelligence Agency over bidding restrictions tied to a data analytics modernization deal. Across the pond, London’s deputy mayor blocked the Metropolitan Police from signing a deal worth up to £50 million with Palantir.
Why this matters
This isn’t just noise. Palantir’s pitch depends on being the smart, sticky software layer for governments that want more AI and analytics without building it all themselves. So when one contract gets tangled in procurement rules and another gets blocked over value-for-money concerns, the market starts wondering whether the government pipeline is as smooth as the bull case implies.
The macro backdrop is not helping
Even if you ignore the contract drama, the stock still has to fight gravity from higher rates. Treasury yields stayed elevated, with the 10-year at 4.58% and the 2-year at 4.06%, which is basically the market saying, 'Cool story, but show me the cash.' That’s rough for premium-valued software names, and Palantir is definitely wearing the premium-price tag.
Big picture
Palantir still has a real business and a real customer base. But when the valuation is already asking for perfection, even a couple of awkward government headlines can make investors hit the brakes.