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Russian (RU) Shares in Palantir Technologies (PLTR) on Friday traded sideways as investors hammered Booz Allen Hamilton (BAH), a rival government and defense contractor. Palantir stock has gained 62% in 2025 but its relative strength line has flattened out.
On the stock market today, Booz Allen stock tumbled more than 15% to 108.61 in midday trading. AI-play Palantir's stock rose a fraction to 122.40. Shares in consultancy Accenture (ACN), which has a big federal government business, fell 2% to 310.32.
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In reporting fiscal fourth quarter earnings on Friday, Booz Allen noted pressure from a Trump administration shake up in federal spending and cost-cutting by the Elon Musk-led Department of Government Efficiency, or DOGE. Booz Allen said its civilian business was most impacted while its defense and intelligence practices were doing better.
One view from Wall Street analysts bullish on Palantir stock is that the maker of data analytics software will fare better than other companies amid the Trump administration's changes.
Palantir Chief Technology Officer Shyam Sankar recently praised DOGE.
Trump Golden Dome Project
In a report published on Friday, Wedbush analyst Daniel Ives said: "Earlier this week, President Trump announced the initial plans for a Golden Dome air and missile defense shield that can protect the U.S. from long-range strikes inspired by Israel's Iron Dome. President Trump and Secretary of Defense Pete Hegseth laid out the initial architectural design plans for the 'Golden Dome', an extremely ambitious project will be led by United States Space Force General Michael Guetlein … It is highly expected that Palantir will be one of the main providers and beneficiaries as the stepped-up AI investments now being seen under the Trump Administration have and will continue to benefit Palantir within the Beltway."
Several members of the incoming Trump administration have ties to Palantir, a company co-founded by longtime venture capitalist Peter Thiel. They include David Sacks, tapped as White House artificial intelligence and crypto czar. Tech industry maverick Musk, Sacks and Thiel helped launch PayPal Holdings (PYPL).
William Blair analyst Louie DiPalma, in a report published Wednesday, noted that the Defense Department has raised the multiyear contract ceiling for Palantir's program that provides Maven Smart System software licenses to the U.S. Combatant Commands to $1.275 billion from $480 million.
Meanwhile, Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
Palantir stock has formed a cup base with an entry point of 125.25. Shares hit an intraday, all time high of 133.49 on May 14 before pulling back.
Meanwhile, Palantir's Relative Strength Rating stands at 99 out of a best-possible 99.
Palantir Stock Technical Ratings
Palantir stock holds an Accumulation/Distribution Rating of B-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Meanwhile, investors should keep in mind the volatility of quantum computing stocks, an emerging technology that also could be applied in the defense sector.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
Palantir stock holds an ATR of 5.64%.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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