Palantir Technologies (PLTR) shares fell more than 6% in early trading after Democrats won the midterm elections, then pared losses to 1% by 11:15 a.m. ET on Wednesday. President Trump had requested $1.5 trillion in fiscal 2027 defense spending, but a Democratic Congress may not approve that level, and Politico reports the Pentagon is considering cutting the request to $1.1 trillion. With more than half of its revenue from government contracts, Palantir could be hurt by this. Barclays raised its price target to $273 with an overweight rating, while Bank of America reiterated its buy rating with a $255 price target, implying 47% upside. Bank of America's analyst noted that Palantir's commercial sales roughly doubled year-to-date, while government sales grew 78%.
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