Palantir stock just had its worst four-day stretch since 2022 and its losing streak is on track to extend to a fifth day.

Investors have been fretting about U.S. government spending cuts that could impact the data analytics and military contractor firm's bottom line.

Shares are down another 1.5% to $89.35 in premarket trading Tuesday. The stock fell nearly 11% Monday.

By Monday's close, shares had fallen 27% over the past four days, down from a record high of $124.62 on Feb. 18. That's the stock's worst four-day performance since May 2022 when it fell 34% after a weak earnings report, according to Dow Jones Market Data.

The drop comes amid a broad defense stock selloff after news last week that the Trump administration could cut military spending. That may affect Palantir which provides software and artificial intelligence solutions to the Department of Defense.

Despite the decline in recent days, the shares are still up 20% so far in 2025, through Monday's close.

However, there may still be cause for investors to think twice about owning Palantir stock. It's trading at about 160 times forward earnings, way above the Nasdaq Composite's average of 27.7, and many times that of peers.

Analysts are also divided. Half of the 26 analysts covering the stock have a Hold-equivalent rating on the stock, according to FactSet. And even as the majority of the analysts have hiked their price target for the stock as late as this month, for most, it isn't enough to keep up with the skyrocketing share price. Only 31% of analysts rate it Buy.