Amid the massive success of Palantir (NYSE: PLTR), whose stock has steadily grown this year, with some analysts even saying it is starting to look “very expensive,” the big data software manufacturer made a large investment in an air transportation company, driving up the price of its shares.
As it happens, Palantir has recently invested nearly $1.6 million in Surf Air Mobility (NYSE: SRFM), an American aviation company focused on regional flying that is working on introducing electric and hybrid powertrains to upgrade existing aircraft, according to a report from October 3.
Specifically, with its recent purchase, which involved buying 1.26 million SRFM stock at a price of $1.248 each and is part of a commercial arrangement with the company, Palantir has increased its stake in Surf Air Mobility to over 2.73 million shares, affirming its position as the major shareholder.
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Surf Air Mobility stock analysis
As a result, the SRFM stock price reacted by soaring nearly 30% upon the news, surging from $1.31 to $1.70 in a single day and continuing its steady growth toward $2.57 it hit on October 7, an increase of a whopping 96.18% since the purchase revelation.
That said, the price of Surf Air Mobility stock has slightly consolidated since and currently amounts to $2.16, up 12.37% on the day, gaining 64.89% across the past week, and accumulating an advance of 102.16% over the month while reducing its year-to-date (YTD) decline to 78.67%.
At the same time, Palantir stock is trading at $38.88, which means it is down 2.80% on the day, up 5.81% on the week, increasing 13.28% across the month, and advancing 136.40% since the year’s turn, according to the most recent chart information on October 8.
Meanwhile, the recent growth of its exposure to Surf Air Mobility demonstrates Palantir’s business strategy and interest in expanding its portfolio to the non-scheduled air transportation sector and could contribute to its further positive results in the future.
