Shares of Palantir Technologies (NASDAQ: PLTR) are trading lower on Monday. The company's stock lost 8.4% as of 11:50 a.m. after losing as much as 11.9% earlier today. The drop comes as the S&P 500 was flat while the Nasdaq Composite lost 0.

Planned cuts to defense spending sparked a sell-off for Palantir stock that has continued into this week. Shares have tumbled after touching records.

The selloff in Palantir Technologies shares is gaining steam. The data-analytics company's stock has been a wildly popular play among retail investors and is often prone to sharp price swings. That has been particularly evident recently.