Palantir Technologies ( PLTR -10.53%) shares have been red hot for the past couple of years, but the stock was tumbling after Defense Secretary Pete Hegseth ordered the Pentagon to slash its $850 billion budget by 8%, or about $50 billion.

Last week’s rout in Palantir Technologies Inc. shares has done little to convince skeptics that it’s suddenly a bargain.Most Read from BloombergTrump Targets $128 Billion California High-Speed Rail ProjectTrump Asserts Power Over NYC,

Key Takeaways Palantir Technologies shares plunged Monday, extending losses following a report last week that the Trump administration directed the Pentagon to trim the U.S. defense budget.The report raised worries Palantir could be negatively impacted as a contractor for the U.