Palantir Technologies stock, represented by the ticker PLTR, experienced a shift in its performance during intraday trading. After initially showing potential for a seventh consecutive day of gains, the stock ultimately turned downward. This development came as investors responded to recent headlines related to the data-analytics software company.
Earlier on Thursday, Palantir’s stock saw an increase of over 1%. However, it later reversed its course and is now down by less than 1%, currently hovering around the $17.87 mark. The S&P 500 also experienced a downturn in the afternoon due to a rise in bond yields.
If the shares manage to close higher by the end of the day, it would mark their longest winning streak since October 2022, according to Dow Jones Market Data. Over the past week, the stock has climbed an impressive 22%.
This rally began shortly after an exclusive report from Bloomberg was released last week. The report indicated that Palantir was being considered as the leading candidate for a lucrative five-year contract with the U.K.’s National Health Service (NHS). While neither Palantir nor the NHS have officially confirmed the contract or offered any comments in response to inquiries, this rumor has sparked optimism among investors.
Earlier this year, the NHS revealed its plans to invest in a data platform in order to enhance collaboration among health and care organizations. The intention is to leverage the wealth of information available and gain valuable insights into patterns, problem-solving, and service planning for local populations.
In conclusion, although Palantir Technologies stock experienced a temporary setback today, it continues to generate interest and optimism among investors following the potential contract with the NHS. As the trading day comes to a close, all eyes will be on whether Palantir can secure another day of gains and extend its winning streak.
Palantir Secures New $250 Million Army Contract
Palantir, a leading data analytics company, has recently been awarded a new contract by the U.S. Army. The contract, valued at up to $250 million, will extend until 2026.
The company stated that the contract aims to provide additional capabilities in support of various organizations, including Combatant Commands (COCOMs), Armed Services, Intelligence Community, and Special Forces. These entities are actively exploring, utilizing, and expanding artificial intelligence (AI) and machine learning (ML) technologies.
While this announcement has spurred a positive market response, not everyone shares the same optimistic outlook for Palantir. William Blair analyst Louie DiPalma, for instance, rates the stock as “Underperform” without assigning a specific price target. In a research note published on Oct. 4, prior to the Army contract announcement, DiPalma pointed out that Wall Street’s 2024 consensus revenue estimate of $2.6 billion already incorporates the anticipated earnings from the NHS contract.
Despite this potential breakthrough, DiPalma remains cautious about Palantir’s future. He believes that the company faces significant challenges in the upcoming year due to increased competition from tech giants such as Amazon (AMZN), Microsoft (MSFT), Databricks, and other players in the market.
In conclusion, Palantir’s new contract with the U.S. Army represents a significant milestone, showcasing their ongoing commitment to advancing AI and ML technologies. However, industry experts like DiPalma believe that Palantir may encounter formidable competition in the coming months.