Applovin and Palantir Stock Lead the Decline, as S&P 500 and Dow Jones Close the Week Down

Main US stock indices such as S&P 500 and Dow Jones ended the week lower, with Applovin and the Palantir stock losing the most.

This was a negative week for stock markets, particularly Friday. The major US indices are closing sharply lower with the Down Jones down by -2.9%, the NASDAQ index down -2.20% and the Russell 2000 index down close to 3%. Nasdaq and S&P had the worst week since the first week of January.

Palantir’s Rollercoaster Ride Amid Budget Cuts

Palantir shares experienced a dramatic 500% surge from early 2024 until February 18, when momentum shifted, and the stock began to decline after reaching a new all-time high. The downturn came after news of an 8% budget cut by the Pentagon, raising concerns for companies that rely on US defense spending. While the cuts could lead to efficiency improvements, they also pose risks for government-dependent firms like Palantir.

With US stock markets closed on Monday, Palantir saw a sharp drop on Tuesday, falling below the $100 mark after reaching a record high of $125.40. However, it managed to recover some ground, ending the week at $101.30.

AppLovin’s Highs and Lows After Strong Earnings

Following an impressive Q4 2024 earnings report, AppLovin’s stock skyrocketed from $380 to $525.15 on February 13, marking a 28% gain in just a few days. However, last Friday brought a reversal, leading to a sharp sell-off. By the end of the week, AppLovin closed at $415, down 21% from its peak.

Market sentiment around AppLovin has shifted, with some investors questioning the sustainability of its rapid revenue growth. Concerns have emerged about low-quality advertising revenue, with critics pointing to misleading or unclickable ads as a potential weakness in the company’s business model.

Investor Takeaway

Both Palantir and AppLovin saw record highs this month, only to face steep declines shortly after. For Palantir, dependence on government contracts remains a key risk, especially in light of defense budget cuts. Meanwhile, AppLovin’s explosive growth is under scrutiny, with doubts over its advertising model. Investors remain watchful as both companies navigate these challenges.

Weekly Closing Levels for Major US Indices

Performance of Large-Cap Stocks This Week

• Decliners:

  • Meta: -7.3%
  • Amazon: -5.3%
  • Tesla: -5%
  • Nvidia: -3.4%
  • Alphabet: -3%
  • Broadcom: -6.2%
  • Palantir: -15%
  • Applovin: -18.5%

• Gainers:

Market Summary

It was a tough trading week across major US indices, with all experiencing their worst weekly losses in months. Tech-heavy NASDAQ, Dow Jones and small-cap Russell 2000 took the biggest hits, while individual tech giants like Meta, Amazon, and Tesla faced significant declines. A few stocks, like Apple and Dell, managed to stay in positive territory, but overall sentiment was negative. The market continues to face selling pressure, reflecting investor caution.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.