In a striking move, former President Donald Trump publicly endorsed Palantir Technologies, a defense tech firm traded under the ticker symbol PLTR, in a post on Truth Social. This marks an unprecedented moment as no sitting president has previously ventured to support a publicly traded company in such a direct manner. Trump’s endorsement came at a time when Palantir’s stock was facing significant declines, including a 14-16% drop over the preceding week and a 6% dip on the day of his post.
Following the endorsement, the stock price of Palantir saw a brief rebound, climbing approximately 3% from around $123 within minutes. However, it ultimately closed lower at $128.06 for the day. Senator Mark Warner quickly reacted, suggesting that Trump’s post might represent an attempt to manipulate markets. He shared a screenshot of Trump’s message on X, which raised eyebrows regarding the implications of presidential endorsements in the stock market.
The downturn in Palantir’s stock was attributed more to broader market trends and specific developments related to competing AI company Anthropic rather than Trump’s endorsement itself. Recently, Anthropic launched its Claude Mythos Preview, an AI model tied to its cybersecurity initiative. This release unsettled investors who had previously viewed Palantir as insulated from potential disruptions in the sector. The firm’s dependency on Anthropic raised questions about its future stability after the Pentagon blacklisted Anthropic for its refusal to remove safety protocols related to its AI models.
Adding to the concerns, prominent investor Michael Burry, known for his role in “The Big Short,” commented that Anthropic is significantly outperforming Palantir, asserting that nearly 25% of businesses on a corporate spend tracker are now choosing Anthropic services, up from just 4% the previous year.
As of Thursday’s market close, Palantir had slid roughly 28% year-to-date and was down about 38% from its 52-week high achieved in November 2025. Trump’s post attracted scrutiny due to the close ties between his administration and Palantir Technologies. Co-founder Peter Thiel has been a notable Trump supporter, while CEO Alex Karp has also made significant contributions to Trump’s political endeavors.
Critics noted the unusual nature of Trump’s endorsement, particularly his mention of the stock ticker, prompting discussions about whether it constituted an attempt to influence the stock price of one of his backers. Trump has a history of making market-moving announcements, having previously caused notable fluctuations in oil prices through statements made on social media.
Despite the tumult, some analysts maintain a positive outlook on Palantir. Wedbush’s Dan Ives retains an Outperform rating with a target price of $230 for the stock, contrasting sharply with Burry’s bearish predictions. Burry has declared his skepticism about Palantir’s valuation, holding long-dated put options in anticipation of further declines.
The implications of a former president’s market interventions are complex. Presidents typically operate outside of insider trading laws, and there is no clear legal framework regarding public endorsements of specific stock tickers. The situation reflects ongoing concerns about the intersection of politics, finance, and ethics in modern governance.
