Palantir Technologies Stock Takes a Hit Amidst Security Flaw Reports
Palantir Technologies saw a significant 7.5% drop in their shares this past Friday. This tumble followed reports of severe security vulnerabilities in a battlefield communications system. The system, developed in partnership with defense contractor Anduril Industries, has raised serious concerns. This marks Palantir’s most drastic single-day performance dip since August, landing them the title of the S&P 500’s biggest decliner for the day.
These concerns stem from an internal U.S. Army memo, as reported by Reuters and Breaking Defense. The memo labeled the NGC2 (Next Generation Command and Control) prototype system as “very high risk”. This was due to fundamental security issues that were identified.
- The memo pointed out critical issues such as improper access controls. This flaw allows any authorized user to access all applications and data, regardless of their clearance level.
- Furthermore, there is no logging system in place to track user actions.
Despite these claims, Palantir strongly disputed the allegations. A company representative stated, “No vulnerabilities were found in the Palantir platform.” Army officials also provided some clarification. They explained that finding security vulnerabilities is a part of the normal integration process. Lieutenant General Jeth Rey noted, “We found a risk and we mitigated it right out of the gate.”
Despite the Friday decline, Palantir stock remains up over 128% year-to-date. This reflects strong investor confidence in the company’s AI and government contract capabilities.
Source: Bloomberg