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Palantir stock was rising on Monday.
Michael Nagle/Bloomberg
Palantir Technology
stock took off on Monday after the data-analytics software company said it was awarded a contract to deliver technology to the U.S. Special Operations Command.
News of the multiyear contract, worth up to $463 million, sent
Palantir
(ticker: PLTR) shares up 4.9% to $15.23. The new contract builds on previous work the company has done with the Special Operations Command, according to a Palantir spokesperson.
The company said it “is driving rapid innovations” in its defense portfolio, making strides in large language models “to reduce cognitive load on warfighters and commanders; as well as advancements in edge processing and edge AI to maximize the warfighter’s ability to integrate and utilize real-time information.”
However, analysts at William Blair are less optimistic about the contract news and the company overall, writing that the agreement won’t significantly affect revenue, and maintaining an Underperform rating on the stock. Points of tension for the company include churn for other contracts and increased competition from other vendors, the analysts noted.
Last month, Palantir delivered better-than-expected results for its first quarter, raised its financial guidance, and touted its recently announced artificial intelligence platform, AIP.
Write to Emily Dattilo at [email protected]
Source: https://www.barrons.com/articles/palantir-stock-defense-contract-ai-383a35c0?siteid=yhoof2&yptr=yahoo