Palantir (NASDAQ: PLTR) stock is getting hit with another round of sell-offs and was down 4% in Tuesday’s trading as of 2:05 p.m. ET. Meanwhile, the S&P 500 was down 0.9%, and the Nasdaq Composite was down 2.1%. The stock had been off as much as 6.7% earlier in today’s trading and is currently down 26% year to date.
Palantir is losing ground today in conjunction with news suggesting that the company could be in danger of losing a contract with the U.K.’s National Health Service. Along with that business-specific pressure, the stock is also seeing selling action connected to concerns about valuations for artificial intelligence (AI) stocks, macroeconomic risks, and SpaceX’s June 12 IPO.
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Is the NHS getting ready to break up with Palantir?
Reuters published a report today stating that the U.K. government is reviewing whether or not it will end a partnership between the NHS and Palantir. Come 2027, the government will have to decide whether it wants to extend the NHS’s contract with Palantir or end the relationship. The contract is worth roughly $441 million and has been the subject of intense scrutiny from members of the British parliament.
The broader market is taking a hit today
The stock market is facing strong selling pressures in today’s trading, and there are multiple catalysts shaping the momentum. For starters, investors have recently shown increased caution when it comes to valuations for highly growth-dependent AI stocks. With the Bureau of Labor Statistics set to publish Consumer Price Index (CPI) data for May tomorrow, investors are feeling jittery. If inflation comes in hotter than expected, valuations for Palantir and other growth stocks could take big hits.
Adding another source of market volatility, investors are also weighing the potential implications of SpaceX’s IPO this Friday. The company is set to hit the market with a $1.77 trillion valuation, and the broader market could face valuation pressures if the space-tech stock stumbles in its public debut.
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