PLTR Stock Drops with Nasdaq: Defense Deals Can’t Shield Palantir from the Tech Rout
After two strong weeks on the back of major defense contracts, Palantir (PLTR) stock and Nasdaq tumble as broader tech markets falter.
Quick overview
- Palantir Technologies (PLTR) experienced a significant rally fueled by defense contracts, gaining over 35% in two weeks.
- Despite positive news regarding a NATO contract, PLTR stock fell due to a broader tech market downturn, opening at $92.79.
- The upcoming Q1 earnings report on May 5 is crucial for PLTR's stock momentum, with expectations of 36% year-over-year revenue growth.
- Palantir's long-term strengths in defense and AI may not be enough to shield it from ongoing tech market volatility.
After two strong weeks on the back of major defense contracts, Palantir (PLTR) stock and Nasdaq tumble as broader tech markets falter.
Palantir’s Hot Streak Fueled by Defense Contracts
Palantir Technologies (PLTR) had been enjoying a bullish run over the past two weeks, gaining more than 35% off its April lows. The rally was largely sparked by a high-profile defense contract involving NATO and the U.S. military, positioning Palantir at the forefront of global security technology.
PLTR Chart Weekly – The Euphoria Has Faded
One of the key drivers was last week’s announcement that Palantir would roll out its Maven Smart System AI platform for NATO’s Communications and Information Agency (NCIA). The news sent PLTR shares up by 5% to $99, though the stock failed to break through the significant $100 resistance level. The contract reinforced Palantir’s emerging role as a critical AI partner in Western defense alliances, a position that has earned it considerable investor attention.
Tech Market Rout Reverses PLTR Momentum
Despite the positive news, Monday’s session opened on a downbeat note for Palantir, with broader market sentiment turning sharply negative. The Nasdaq 100 fell 3.5% intraday, weighed down by a wave of selling in major tech and semiconductor names like Nvidia (NVDA), Amazon (AMZN), and Tesla (TSLA).
PLTR opened with a bearish gap at $92.79, compared to Thursday’s close at $93.78. The downward trend continued through the session, with shares falling to $90.50 at the time of writing—erasing a portion of the recent rally.
Earnings in Focus: Can Q1 Results Sustain PLTR’s Rally?
Palantir’s upcoming Q1 earnings report, set for release on May 5, will play a critical role in shaping the next move for PLTR stock. Management has guided for 36% year-over-year revenue growth, matching the growth rate reported in Q4. While this suggests solid consistency in demand, the key question is whether Palantir can surprise to the upside.
Historically, Palantir has tended to deliver results that slightly outpace its own forecasts—often by 1 to 2 percentage points. If that trend continues, investors could be treated to stronger-than-expected numbers, potentially reigniting momentum following the recent dip.
However, market sentiment remains fragile, and even a slight miss—or conservative forward guidance—could trigger another pullback. All eyes will be on revenue growth, government contract pipeline updates, and any commentary related to AI integration and international expansion.
Trump Tariff Euphoria Fades, Dragging Down Stocks
Earlier this month, optimism returned to markets after U.S. President Donald Trump hinted at suspending tariffs on consumer goods, briefly lifting sentiment across tech and industrial sectors. Stocks rallied strongly in response, but that boost has since faded.
As risk appetite vanishes, equity indices are once again under pressure. The Dow Jones Industrial Average (DJIA), which had dropped over 20% between February and March, found technical support at its 200-week simple moving average (SMA). It rebounded in early April but failed to keep the gains.
Nasdaq Chart Weekly – Sellers Have Returned
Similarly, the Nasdaq Composite, which also corrected over 20% earlier in the year, bounced above its long-term 200-week SMA in April. Yet buyers failed to sustain momentum above the 20,000 threshold, and the index has since dropped below 18,000.
Conclusion: Can Palantir Hold Its Ground Amid Tech Turmoil?
Palantir’s long-term defense positioning and AI expertise remain key strengths, especially as geopolitical risks and national security investment continue to rise. However, the stock remains vulnerable to the broader tech selloff. If macro pressures continue to weigh on risk assets, PLTR may struggle to hold recent gains—even with strong fundamentals and government support. Investors will be watching closely to see if the $90 support level can hold in the coming sessions.
Nasdaq Live Chart
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