AI stocks fell in overnight trading. BigBear.ai Holdings fell 9%; Palantir Technologies Inc. fell 5%; Tempus AI fell 2%; SoundHound AI Inc fell 0.5%.

Palantir declined 10% on Wednesday, following a report that US Defense Secretary Pete Hesgeth plans to slash military spending.

Palantir, which has seen its stock soar by almost 50% this year, is a major US defense contractor in addition to selling its technology and artificial intelligence products to other allied governments and private companies.

“Palantir’s US government segment growth — more than 40% in the past two quarters — may have much greater exposure to any cuts in the US defense budget,” Bloomberg Intelligence analyst Mandeep Singh wrote in a note. He added that the government sales make up more than half of the company’s total revenue.

On Wednesday, the Washington Post reported that Hegseth has ordered senior military leaders to develop plans for cutting 8% from the defense budget in each of the next five years, according to a memo sent to senior officials. Bloomberg previously reported news of the intended cuts, before distribution of the memo.

Online car dealer Carvana Co. reported a revenue and profit beat for the fourth quarter, as the company continued its push into profitability. However, shares pulled back as much as 10% in overnight trading.

For the fourth quarter, Carvana posted revenue of $3.55 billion vs. $3.34 billion, estimated per Bloomberg consensus estimates, up 32% from a year ago, though lower than the $3.66 billion reported in Q3. Carvana reported Q4 EPS of $0.56 vs. $0.31 estimated, with adjusted EBITDA coming in at $359 million vs. $329.4 million expected.

SUPER MICRO COMPUTER INC fell 3% in overnight trading after rising 8% on Wednesday. Intel fell 2% in overnight trading following a 6% decline on Wednesday.

Klaviyo, Inc. reported its fourth-quarter 2024 earnings, revealing a revenue of $270.2 million, surpassing the forecast of $257.47 million. However, the company missed its earnings per share (EPS) forecast, reporting an EPS of $0.07 against the expected $0.12. Despite the mixed results, Klaviyo's stock fell by 12% in overnight trading.

Grab Holdings forecast its annual revenue below analysts' estimates on Wednesday, as it grapples with intense competition in food delivery and ride-hailing businesses, sending its U.S.-listed shares down 11% in overnight trading.

The company forecast its fiscal 2025 revenue to be between $3.33 billion and $3.40 billion, the midpoint of which is below the analysts' average estimate of $3.40 billion, according to data compiled by LSEG.

Grab faces competition from smaller rivals such as Foodpanda and Indonesia's GoTo in the food delivery space. That only exacerbates worries at a time when consumer sentiment remains weak amid macroeconomic volatilities.