What Happened?
Shares of data-mining and analytics company Palantir (NYSE: PLTR) jumped 5.6% in the morning session after the company announced an extension of its partnership with the U.S. Army to improve the Army Data Platform (ADP) via the Army Vantage software system. The Vantage platform has supported more than 100,000 users and integrates data from more than 180 sources, highlighting the growing complexity and sophistication of building and managing the project. This expanded contract is valued at approximately $401 million over a period of up to four years, with a total potential ceiling of $619 million.
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What The Market Is Telling Us
Palantir’s shares are very volatile and have had 22 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 previous big move we wrote about was 16 days ago when the stock gained 6.2% on the news that the company announced that it has been granted FedRAMP High Authorization for Palantir Federal Cloud Service (PFCS) and Palantir Federal Cloud Service - Supporting Services (PFCS-SS).
This authorization enables Palantir to provide its products and services to the US government at a higher level. The milestone underscores Palantir's growing strength and progress in the federal market, a critical vertical that plays a significant role in driving the company's growth.
Palantir is up 356% since the beginning of the year, and at $75.56 per share, it is trading close to its 52-week high of $76.34 from December 2024. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment worth $7,954.
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