Feb 20 - The Washington Post published Defense Secretary Pete Hegseth's memorandum that triggered Palantir (PLTR, Financial) stock prices to tumble more than 10% on Wednesday. The memo, which must be finalized by February 24, excludes 17 designated categories that remain outside the budget reduction plan for southern border protection and missile defense nuc, lear arsenal modernization, and one-way attack drone programs.
Since such a reduction in the budget would enable spending for necessary defense operations to decrease in a financial climate that is growing worse, this reduction would have adverse effects. Companies heavily dependent on defense contracts, like Palantir, are in worse markets due to investor expectations of the proposed budget cuts. Already, experts in the market vigorously debate the breaking news that emerged at the weekend.
The company declined to provide immediate remarks about the topic. Goldman Sachs clients observe peaceful caution regarding extended defense funding modifications after expiration of the memo's recommendations.
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