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The catalyst for Palantir's recent drama is an proposed 8% cut in defense spending by the United States government. Such a significant reduction posed concerns for investors, especially considering that a large portion of Palantir's revenue stems from government contracts. Despite the alarming implications this cut could have, many experts believe that the reality of government budget negotiations will likely diminish this potential impact. Historical lobbying power from contractors within the defense sector suggests that any cuts will be negotiated down, perhaps to as little as 4%.