What Happened?
Shares of data-mining and analytics company Palantir (NYSE: PLTR) jumped 5.1% in the afternoon session after it announced a strategic partnership with Accenture Federal Services to modernize AI capabilities for U.S. government agencies.
The collaboration will focus on training 1,000 members of Accenture's Data & AI team on Palantir's Foundry and Artificial Intelligence Platform (AIP). This initiative was designed to accelerate the adoption and implementation of advanced data and AI tools across various federal government operations, enhancing functions like supply chain management and strategic planning.
The news reinforced Palantir's strong position within the government sector, a key driver of its business, and taps into the broader investor enthusiasm for artificial intelligence applications.
After the initial pop the shares cooled down to $137.16, up 4.9% from previous close.
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What The Market Is Telling Us
Palantir’s shares are extremely volatile and have had 48 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 26.9% on the news that the company reported impressive fourth-quarter results, which blew past analysts' billings, revenue, and EPS estimates, amid encouraging AI demand.
Both its commercial and government businesses posted strong double-digit growth. The government side remains the bigger earner, but the commercial division is gaining ground, especially in the U.S. There, commercial sales jumped 64% from a year ago and 20% from the prior quarter.
Looking ahead, the outlook provided was also encouraging, with the company's 2025 revenue guidance exceeding expectations. Zooming out, we think this was an outstanding quarter.
After the solid results, several Wall Street firms upgraded their ratings. Morgan Stanley upgraded PLTR from Sell to Hold, adding, "Given the strength of the outlook, we acknowledge that we were wrong about our core fundamental catalyst of slowing growth below the 30% level due to the tougher compares in 2025."
Palantir is up 82.4% since the beginning of the year, and at $137.16 per share, it is trading close to its 52-week high of $144.25 from June 2025. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment worth $14,438.
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