Friday looked set to be a crucial day for Palantir Technologies stock after its two-day 15% slump as investors assessed whether the weakness was a blip or something more sustained. The shares rose 0.5% to $106.78 Friday so the damage seems to have paused for now. Two things in particular spooked investors earlier this week—CEO Alex Karp’s new plan to sell up to $1.2 billion worth of shares and reports that the Trump administration has warned the U.S. Department of Defense about budget cuts.

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