Will Palantir (PLTR) and Oracle Stock Extend Crash Amid Pentagon-DOJ Budget Cuts?

Oracle Stock Faces Continued Pressure Amid Security Concerns and Trade Tariffs

Oracle’s stock has been highly volatile in recent months, struggling to recover from a prolonged downturn since December 2024. After an initial attempt at a rebound in January, the downward trend resumed, culminating in a sharp decline following disappointing Q3 earnings in early March. The stock plummeted to $137, marking a 30% drop from its December high of $198.

Oracle’s earnings miss pushed the stock below critical technical levels, particularly the 50-day SMA (yellow), reinforcing bearish sentiment. A brief rebound to $150 followed after the company announced a $5 billion investment in the UK to expand Oracle Cloud Infrastructure (OCI). This move was aimed at supporting the UK government’s AI innovation and cloud adoption strategy.

Oracle Shares Chart Weekly – The 50 SMA Has Been Broken

However, security concerns continue to weigh on investor confidence. Cybersecurity firm CloudSEK corroborated a hacker’s claim that an Oracle Cloud breach compromised six million records, including single-sign-on credentials, OAuth2 keys, and tenant information. Additionally, the FBI is investigating a separate breach involving stolen patient data from Oracle’s healthcare systems, allegedly intended for extortion.

Last week, selling pressure intensified as auto tariffs negatively impacted financial markets. Oracle stock opened at $156.60 but quickly declined, closing the week at $140—losing over 10% in just a few days. Further downside risk looms as U.S. trade tariffs take effect on April 2, and the U.S. Department of Defense (DoD) considers cutting Oracle software from its civilian labor management systems as part of broader cost-cutting measures.

Palantir Struggles as Government Budget Cuts Threaten Revenue

Palantir has faced extreme volatility throughout 2025, reflecting its reliance on government contracts and shifting market sentiment. The stock initially climbed nearly 5% early last week but quickly reversed course, closing the week down about 8% at $85.07.

The broader decline follows a turbulent start to the year. In January and early February, PLTR shares surged 60% to a high of $125 before crashing 40% to $75 after Donald Trump announced an 8% reduction in the Pentagon’s budget. Given Palantir’s heavy dependence on federal contracts, the planned spending cuts rattled investors, raising concerns about revenue growth.

PLTR Stock Chart Weekly – The 20 SMA Still Holds

Technical indicators suggest further downside risks. The stock attempted to recover off the 20-week SMA (gray) earlier this month, but momentum has stalled. If sellers push the price below this key support level, further declines may be on the horizon.

As the market braces for new trade tariffs and potential defense budget cuts, both Oracle and Palantir remain under pressure. Investors will be watching closely to see if these stocks can stabilize or if further losses are inevitable.