Congress Trade Scandal: US politicians make super suspicious Palantir stock trades

Recent stock trades by two U.S. congressmen have reignited debates over the ethics of lawmakers engaging in stock market activities. Representatives James Comer (R-KY) and Gilbert Ray Cisneros (D-CA) purchased shares of Palantir Technologies (NYSE: PLTR) shortly before a significant surge in the company’s stock price.

Strategic Investments by Lawmakers

James Comer: Serving as the chair of the House Committee on Oversight and Accountability, Comer acquired Palantir shares on January 21.
Gilbert Ray Cisneros: A member of the House Committee on Armed Services, Cisneros made his purchase on January 24.

Both transactions were valued between $1,001 and $15,000. Given Palantir’s significant involvement in defense contracts and government intelligence operations, their committee roles might have provided them with insights not readily available to the public.

WOW.

TWO members of Congress just disclosed $PLTR purchases stock this morning.

The trades were both made in late January. The stock is up over 50% since then.

We had never seen a politician buy Palantir stock before today. pic.twitter.com/cDQPqeKz2Y

— Quiver Quantitative (@QuiverQuant) February 12, 2025

Palantir’s Stock Performance

Following these purchases, Palantir’s stock experienced notable gains:

Comer’s Investment: Increased by approximately 58.84%.
Cisneros’s Investment: Rose by around 46.96%.

As of the latest data, Palantir’s stock is trading at $116.07, reflecting a 53.47% increase year-to-date.

The Defense Connection

Palantir is renowned for its AI-driven defense and intelligence solutions and has secured major government contracts:

Cisneros’s Position: His role on the Armed Services Committee may provide insights into forthcoming defense contracts, a significant revenue source for Palantir.
Comer’s Role: As chair of the Oversight and Accountability Committee, he has access to discussions on government technology, cybersecurity, and AI innovations, all pertinent to Palantir’s operations.

Ethical Considerations

The capacity of lawmakers to trade stocks while overseeing the industries they invest in has long been a contentious issue. Critics argue that such practices can lead to conflicts of interest, given their access to non-public information.

This incident has intensified discussions about potential insider trading, the adequacy of disclosure rules, and the enforcement of penalties for violations. There is a growing call for legislation, such as the Bipartisan Ban on Congressional Stock Trading Act, to prohibit lawmakers from trading individual stocks while in office.

As scrutiny increases, the central question remains: Should members of Congress be restricted from participating in the stock market during their tenure?