Skip to content

Palantir stock soars on $480 million U.S. Army deal

Palantir stock soars on $480 million U.S. Army deal
Elmaz Sabovic

Deemed as one of the revolutionary companies that combine AI and military technology, experts see Palantir’s (NYSE: PLTR) stock as a ‘diamond in the rough’ yet to showcase its full potential.

Indeed, the signs of Palantir’s potential are already evident. PLTR stock has demonstrated robust growth, surging by an impressive 26.30% since the start of 2024. This growth is further substantiated by solid revenue and financials, as indicated in the latest Q1 report released on May 6.

Despite this, some analysts are worried about the future and see the missed guidance for the next quarter and full year as a warning sign, especially with reliance on government contracts.

Nevertheless, Palantir secured another $480 million contract with the U.S. Army, showcasing that despite doubts, it still has much to offer.

$480 million contract is bound to bolster Palantir’s financials

The U.S. Army has awarded a $480 million contract to Palantir Technologies Inc. subsidiary for the Maven Smart System project, with work extending through 2029, according to a report from Bloomberg on May 30.

This contract, announced on the same date as part of the Defense Department’s daily updates, will deepen Palantir’s partnership with the military. 

The Maven project utilizes Palantir’s expanding suite of artificial intelligence tools to help soldiers quickly and accurately identify targets using AI and computer vision. Palantir has been developing this technology for the Army since 2018, following Google’s withdrawal from the contract.

Palantir stock already reacted positively to the news

Despite PLTR stock losing 0.52% and closing at $20.94 during a negative trading session, the pre-market showed a more positive trend. Palantir’s shares had increased by 2.82% at the time of writing, with gains expected to continue until the markets open.

PLTR stock 24-hour price chart. Source: Google Finance
PLTR stock 24-hour price chart. Source: Google Finance

The $480 million U.S. Army deal was bound to boost PLTR stock’s performance, and while some remain concerned about the overreliance on government contracts, this boost is more than welcome.

Buy stocks now with eToro – trusted and advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts