Palantir shares fall 5% after FT report on $2.2B contracts

Shares of Palantir Technologies fell sharply on Wednesday, July 8, ending a seven-session rally that had lifted the stock by 25 percent. The data analytics company's stock closed approximately 4.8 percent lower at $127.88, making it one of the worst performers in the S&P 500 for the day.

The downturn followed a report by the Financial Times highlighting internal company discussions and raising the prospect of increased political scrutiny. The report suggested Democratic lawmakers could use subpoena power to investigate Palantir's federal government contracts if they regain control of the U.S. House of Representatives. DA Davidson analyst Gil Luria attributed the stock's movement directly to the report, though he contested the political risk narrative. Luria noted that Palantir has maintained relationships with the Department of Defense across five successive administrations from both major political parties, with each administration expanding its reliance on the company's capabilities.

The timing of the selloff was significant from a technical analysis perspective, as the stock had closed the previous session precisely at its 50-day moving average near $134. The reversal...