United States Representative Marjorie Taylor Greene has been on a stock buying spree at the start of 2025, making what some might consider suspicious purchases in the process.
To put her Congress trades into perspective, the lawmaker purchased a massive $400,000 worth of stocks in February alone, continuing her momentum from previous years.
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Most of her recent buys have primarily focused on technology stocks, with American software giant Palantir (NYSE: PLTR) standing out. Notably, on February 14, she bought a stake in PLTR in a transaction ranging between $1,001 and $15,000.
Since her bet on the stock, PLTR has seen a significant price drop, aligning with the broader market decline and company-specific fundamentals.
At the time of her purchase, Palantir was trading at $119.16, but has since plunged below the crucial $100 support. As of press time, PLTR was trading at $90.68, reflecting a 21.73% drop since Greene’s purchase.
In recent sessions, PLTR has been on a downward trajectory, plunging 25% in the past week, though it remains in the green year-to-date, up over 20%.
Overall, PLTR was part of Greene’s broader stock purchases, which included Apple (NASDAQ: AAPL), Adobe (NASDAQ: ADBE), Intel (NASDAQ: INTC), Meta Platforms (NASDAQ: META), and Microsoft (NASDAQ: MSFT).
Why PLTR stock price is declining
Part of Palantir’s recent decline can be attributed to concerns over government spending cuts under the Donald Trump administration. To this end, PLTR recorded accelerated losses following reports of planned defense budget reductions, raising fears about the company’s future revenue.
As a key Department of Defense (DoD) contractor, Palantir relies on government contracts, particularly for its artificial intelligence (AI) solutions. Any cuts in defense spending could directly impact the company’s revenue outlook.
Adding to PLTR’s bearish sentiment is growing skepticism surrounding insider selling. CEO Alex Karp is reportedly planning to sell about $1.2 billion worth of shares. While legal, such a massive transaction can be interpreted as a lack of confidence in the company’s future.
Another concern is PLTR’s valuation. As of February 25, Palantir’s trailing twelve-month EPS is $0.19, giving it an extreme price-to-earnings (P/E) ratio of 477.26.
Given this valuation, some analysts predict that PLTR is likely to crash. For example, Jefferies analyst Brent Thill projects the stock could plunge to $60, partly citing overvaluation concerns.
PLTR’s decline and impact on Greene’s portfolio aren’t necessarily alarming, as it’s been less than a month since her purchase. If Palantir continues to deliver on AI and meets its growth outlook, the stock could rebound in the long run.
Featured image via Shutterstock
