What's Going On With Palantir Shares Wednesday?
Palantir shares fell 5.78% to $92.71 on Wednesday, influenced by Federal Reserve Chair Jerome Powell's concerns about the slowing U.S. economy and inflationary pressures from tariffs. Powell indicated that economic growth is weakening, which may lead to reduced spending on software and data contracts, potentially impacting Palantir's revenue. Additionally, Morgan Stanley analyst Sanjit Singh maintained an Equal-Weight rating and lowered the price target from $95 to $90.
Palantir Technologies Inc PLTR shares moved lower on Wednesday, along with the broader technology sector, after Federal Reserve Chair Jerome Powell made remarks expressing concern about the economy.
What To Know: Powell said tariffs are likely to fuel inflation and noted that recent data suggests the U.S. economy is slowing, according to CNBC. In addition, surveys of consumers and businesses show weakening sentiment.
Powell said the inflationary effects of tariffs could be more persistent, noting that avoiding that outcome depends on the size of the effects, how long they take to pass through to prices and whether long-term inflation expectations remain anchored.
Powell said the Federal Reserve is waiting for more clarity before making policy changes.
Slower economic growth and rising inflation could pressure government and commercial clients to scale back spending on software and data contracts. This may weigh on Palantir's revenue growth, particularly in discretionary or expansion-focused projects.
Palantir is also under selling pressure after Morgan Stanley analyst Sanjit Singh maintained an Equal-Weight rating on the company and lowered the price target from $95 to $90.
PLTR Price Action: Palantir shares closed 5.78% lower at $92.71, according to data from Benzinga Pro.
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