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.

Shares of Palantir Technologies (PLTR) are down 20% from the all-time high hit earlier this month as CEO Alex Karp plans to sell as many as 10 million shares of PLTR and the Defense Dept. plans to cut its budget by up to $50 billion.

For a while, it seemed Palantir Technologies (NASDAQ: PLTR) could do no wrong, with the stock gaining as much as 1,250% the past two years. Then, investor sentiment took a turn for the worse. The stock plunged as much as 11.