why is palantir stock down today

Palantir stock is down today primarily due to concerns raised by a recent U.S. Army memo that flagged "very high risk" and "fundamental security" flaws in a battlefield communications system (NGC2) that Palantir is co-developing with defense company Anduril. The memo highlighted significant vulnerabilities, including the inability to control user access properly and lack of security logging, which led to fears of potential covert access by adversaries. Although Palantir has stated these issues were already mitigated and no vulnerabilities were found in their platform, the security report has spooked investors, causing a sharp sell-off with the stock dropping around 7.5% recently. Additional pressure comes from broader tech sector declines and investor concerns about valuation and government contract risks. Other factors include recent controversy in Europe, with Danish lawmakers raising privacy concerns about Palantir's software, further contributing to negative sentiment. Despite this dip, the stock remains up significantly year-to-date, reflecting underlying long-term investor confidence. In summary, today's Palantir stock decline is mainly driven by the security flaws report in a key Army communications project and related investor worries over contract and reputational risks.