Palantir stock falls after report reveals Army network flaws

Published 03/10/2025, 15:26
© Reuters

Investing.com -- Palantir Technologies (NYSE:PLTR) stock fell 4% Friday following a report that a battlefield communication system developed by Palantir and Anduril Industries contains "fundamental security" problems according to an internal U.S. Army memo.

The memo, reported by Breaking Defense and Reuters, describes the NGC2 platform as a "very high risk" due to security vulnerabilities that could allow adversaries to gain "persistent undetectable access" to the system. The assessment was written by Gabrielle Chiulli, the Army’s chief technology officer authorizing official, in September.

Among the critical flaws identified in the memo are issues with access control, where "any authorized user can access all applications and data regardless of their clearance level," with no logging system to track user actions. The document also noted that third-party applications integrated into the system had not undergone proper Army security assessments, with one application revealing 25 high-severity code vulnerabilities.

The NGC2 platform is designed to connect soldiers, sensors, vehicles, and commanders with real-time data on the battlefield. Anduril was awarded a $100 million contract to create a prototype of the system with partners including Palantir, Microsoft (NASDAQ:MSFT), and several smaller contractors.

Despite the memo’s critique, Leonel Garciga, Army chief information officer and Chiulli’s supervisor, said in a statement that the report was part of a process that helped in "triaging cybersecurity vulnerabilities" and mitigating them.

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