- Palantir stock rose 6% on Monday due to Israel-Hamas war.
- Palantir rises again Tuesday after receiving $250 million US Army contract.
- PLTR stock is back above the $17 level, an important resistance level.
- The UK’s NHS will supposedly soon announce Palantir as winner of a $579 million contract.
Palantir Stock (PLTR) reached a new high of $18.40 at the start of Tuesday’s session after the prominent data miner announced it had received a three-year, $250 million contract from the US Army.
US equity markets are once again advancing on Tuesday, same as Monday, as the Israel-Hamas conflict looks more contained than it did over the weekend. Even Oil prices have returned to their downward trajectory after initially rising more than 3% early on Monday. The Dow Jones, S&P 500 and NASDAQ Composite have all advanced around half a percentage point, with the NASDAQ taking the lead.
Palantir stock news: Army contract follows rumored NHS project
As is usual for top-secret military contracts, the announcement is short on details. What we know is that Palantir was awarded the contract, which runs through 2026, to aid the US Army’s Combatant Commands, or COCOMs in Army parlance, as well as the Armed Services, Intelligence Community and Special Forces.
The contract is worth up to $250 million if a number of performance goals are met and involves helping these segments of the US Army develop their artificial intelligence (AI) and machine learning capabilities. The contract seeks to help integrate informational sharing and AI modeling through the Joint All-Domain Command & Control (JADC2).
“We’re honored to expand our partnership with the Army to continue delivering the most innovative technologies and advanced data applications across the Armed Services,” said Akash Jain, President of Palantir USG, the segment of the company that deals with US government contracts. “Maturing new concepts for how we deploy solutions in different contexts is key to maintaining our nation’s competitive advantage, and we appreciate the opportunity to support this mission.”
Palantir stock closed 6% higher on Monday as a number of stocks related to the military and defense benefited from US politicians announcing their intention to put together an aid package for Israel in light of its bombing campaign against the Hamas-controlled territory of Gaza. Israel is also readying a ground campaign.
Palantir was rumored last week to have secured a $579 million, multiyear contract with the National Health Service (NHS) of the United Kingdom. Additionally, the company has recently broadened its partnership with PwC to distribute its Foundry and Artificial Intelligence Platform (AIP) to corporate partners of the global accounting firm.
S&P 500 FAQs
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Palantir stock forecast
Palantir stock broke through an important resistance barrier on Monday and was already in an uptrend. The level worked as support back on May 11, 2021, when the high-growing software provider experienced an extreme sell-off event. More recently, PLTR stock has experienced the $17 level as resistance during June and July of this year.
If bulls turn $17 back into support, an activity it hasn’t seen in two years, then there is further hope that PLTR stock could soon retest the August first swing high at $20.24. Beware of poor macro chatter, however, as despite PLTR’s industry-specific tailwinds, the stock has often been a market trend follower. If Palantir does sell off later this week, expect the support band from $13.50 to $14 to catch it.
PLTR daily chart
Source: https://www.fxstreet.com/news/palantir-stock-forecast-pltr-advances-on-250-million-us-army-contract-202310101325