Palantir Technologies Mold has been a complete focus this week since it has reported the income from Q1 on Monday 5 May.
The versatile software company, known for the use of artificial intelligence (AI) to improve defense technology and cyber security, has been one of the breakout shares of the past year, which rises more than 320%. Part of the growth can be attributed to its lucrative defense contracts of the US government.
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However, when Palantir reported mixed income for Q1, the shares started to slide quickly and they are still trending down. The company exceeded Wall Street’s estimates for income, but also revealed that its international commercial activities, responsible for the sale of software abroad, had fallen by 10%.
Even before the income report, some experts speculated that Palantir could be endangered if the so -called Ministry of Government continues to cut efficiency (doge) on federal expenditures. But during the call, one of the leaders of the company spent an expected view of the urgent issue.
As noted, Palantir has significantly benefited from his success in the Defense contract space and positions himself as a leader alongside companies such as Lockheed Martin and RTX technologies. Although this may seem like an indisputable advantage, it has led to a complicated prospect for the company.
Related: analysts reset Palantir -Sharing forecast in the midst of Rally
When President Donald Trump returned to the White House and Elon Musk appointed a high position in the newly formed Doge, some experts speculated that Palantir would benefit from the ties of his leaders with Musk. Palantir chairman and founder Peter Thiel has a long -term relationship with Musk and CEO Alex Karp has praised his leadership.
When Musk and the rest of the DOGE team, however, started implementing steep cuts on the federal spending, speculation quickly rose that Palantir could be jeopardized. Some technology companies reported that the DOG cuts had a negative influence on their company, including IBM, which showed that 15 months of federal contracts were canceled in just three months.
Despite these risks, the leaders of Palantir do not seem to be too worried about further Doge cuts that derail the progress of their company. During the income call of Q1, Chief Technology Officer Shyam Sankar appealed to this subject and described it as the right one for the US, comparing the new government with a highly appreciated Japanese beef terrace.
“We have way too many editions for things that don’t work,” he said. “The government has begun to look like a fine marbled Wagyu. The fake projects that do not deliver and will never deliver the crowd and suffocate the things that can actually be excellent. And so we welcome doge. I mean, for me these guys are heroes.”
