Palantir Praises Elon Musk-Led DOGE Crackdown. Government Lo

Dow Jones NewsMay 6, 12:28 PM UTC

DJ Palantir Praises Elon Musk-Led DOGE Crackdown. Government Looking More Like 'Wagyu.' -- IBD

 

By Reinhardt Krause

 

Enterprise software maker Palantir Technologies expects the Trump administration's efforts to reign in federal spending with the Elon Musk-led Department of Government Efficiency, or DOGE, to bring good results. Whether DOGE is a plus or minus for Palantir stock and tech companies has been debated on Wall Street.

 

"The first thing I'd say is like this is the right thing for the country," said Palantir Chief Technology Officer Shyam Sankar on the software maker's first quarter earnings call with Wall Street analysts.

 

"Like we have way too much spend on things that do not work. The government has started to resemble a finely marbled wagyu. The fake projects that do not deliver and will never deliver crowd out and suffocate the things that could actually be excellent. And so, we welcome DOGE. I mean, to me, these guys are heroes," he said, according to a FactSet transcript.

 

Wagyu, or "Japanese cow," are cattle breeds known for their exceptional meat quality, characterized by intense marbling, tenderness, and rich flavor.

 

If DOGE requires agencies to modernize software and information technology departments, Palantir could win business, some analysts say.

 

PALANTIR STOCK: Q1 EARNINGS

 

"Palantir is highly aligned to many of the new administration contract reform initiatives," said William Blair analyst Louie DiPalma in a report.

 

Further, Palantir on Monday reported March quarter earnings that met views while revenue topped Wall Street targets amid strength in its U.S. government and commercial businesses.

 

On the stock market today, Palantir stock fell more than 8% in early trading.

 

Further, Palantir has won a new $30 million contract from the U.S. Immigration and Customs Enforcement (ICE) agency as well as a deal at the Internal Revenue Service, recent reports said.

 

The DOGE review of federal agencies has pressured information technology service providers who handle substantial contracts with the government, such as Accenture.

 

Enterprise software maker ServiceNow is among other software makers with a sizable federal government business. Analysts estimate that ServiceNow garners about 7% to 8% of revenue from the federal government.

 

SERVICENOW FEDERAL BUSINESS

 

On ServiceNow's Q1 earnings call, chief financial officer Gina Mastantuno said: "What I'll say to that is we are extremely happy with our fed team's execution in a challenging environment, posting another strong quarter, which exceeded our expectations as they did an exceptional job partnering with customers to get the deal done."

 

She added: "We certainly understand that there's an uncertain environment happening right now with the federal government. So, it's one of the reasons why we didn't pass through all of the tail winds of Q1 beat and the (currency exchange rate) to the full-year guide. But make no mistake, midterm and long-term, the opportunity for federal government remains stronger than ever."

 

Meanwhile, several members of the Trump administration have ties to Palantir, cofounded by longtime venture capitalist Peter Thiel. They include David Sacks, tapped as the White House's artificial intelligence and crypto czar. Tech industry maverick Musk, Sacks and Thiel helped launch PayPal, becoming part of the so-called PayPal Mafia.

 

PALANTIR STOCK TECHNICAL RATINGS

 

Musk's artificial intelligence startup, xAI, Palantir and TWG Global on Tuesday announced a partnership targeting the financial services industry.

 

Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

 

PLTR stock owns an Accumulation/Distribution Rating of B-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.

 

Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

 

View this article at Investors.com

 

https://www.investors.com/news/technology/palantir-stock-cto-praises-elon-musk-doge-crackdown/

 

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May 06, 2025 08:28 ET (12:28 GMT)

 

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