Palantir Stock Drops Despite Army Contract Win

Palantir Technologies (NASDAQ:PLTR) recently won an Army production award to build the service's next-generation targeting ground stations, but its stock is down 7% despite this development.

The move captures a rotation story more than a company story, with Palantir's stock being sold today as part of the software sector rather than defense contractors whose contract it just won.

The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is down 3% to $103.06 midday Wednesday, while the iShares U.S. Aerospace & Defense ETF (CBOE:ITA) is down 0.7% to $223.87 in the same session.

Palantir's stock price has given back a chunk of its large one-month run, with a 46% gain that also dragged down Salesforce (NYSE:CRM) shares.