Palantir (PLTR) stocks climb after US$823Mn army contract

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Palantir (PLTR) stocks climb after US$823Mn army contract

 Palantir (PLTR) stocks climb after US$823Mn army contract
Image source: TippaPatt, Shutterstock

Highlights

  • Palantir Technologies Inc. (NYSE: PLTR) has been selected to deliver Army’s intelligence data fabric and analytics foundation under Army’s Capability Drop 2 (CD-2) program.

  • The indefinite-delivery, indefinite-quantity (IDIQ) contract is worth US$823 million. 

  • PLTR had 169 customers as of June 30, 2021. The stock rose 134 percent in one year. 

The Palantir Technologies Inc. (NYSE: PLTR) stock was in the focus of Wall Street investors on Wednesday, a day after bagging a lucrative contract from the US Army. 

On Oct 5, 2021, Palantir announced that it bagged a contract to supply an “intelligence data fabric and analytics foundation” for the US Army. 

The US$823 million order is from the US Army’s Program Manager for Intelligence Systems and Analytics division as part of its Capability Drop 2 (CD-2) program, the company said in a release.

Palantir is already working with the US Army on the Tactical Intelligence Targeting Access Node (TITAN) program and Capability Drop 1 (CD-1) program.

The latest agreement is dubbed the indefinite-delivery, indefinite-quantity (IDIQ) contract.

Palantir will use the Palantir Gotham platform, an operating system, to support defence decision-making by linking and providing information from different sources.                                                  

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The Denver, Colorado-based company was founded in 2003 to build software for counter-terrorism operations. The company provides solutions to organizations to manage data and infer insights for operational outcomes. 

Palantir provides two platforms: Palantir Gotham and Palantir Foundry. Palantir Gotham platform was released in 2008, and Palantir Foundry was released in 2016.

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Palantir stock trends after bagging US$823 million Army contract to deliver intelligence data fabric and analytics foundation under the Capability Drop 2 (CD-2) program.

Source: Pixabay                                                  

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Palantir Financials
 

Palantir’s latest quarterly results showed around 49 percent revenue growth YoY. For the three months ended June 30, 2021, its revenue was US$375.6 million compared to US$251.9 million in the same period a year ago.

 The net loss increased about 25 percent to US$138.6 million, against a net loss of US$110.5 million for the June quarter of 2020. 

However, the net loss per share diluted reduced to US$0.07 compared to the net loss per share diluted of US$0.17 in the June quarter of the previous year.

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In addition, PLTR had 169 customers as of June 30, 2021, an improvement from 137 customers from the year-ago quarter.

The cash and equivalents, including restricted cash position, improved YoY to US$2.44 billion as of June 30, 2021, compared to US$1.64 billion as of June 30, 2020.

The stock traded at nearly 6.89 percent up to US$24.81 at 8:12 am ET in the premarket. 

Palantir has a market capitalization of US$43.6 billion. On Oct 5, 2021, it closed at US$23.21, with a trading volume of 56,574,820. 

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Bottomline

The Palantir stock rose 134 percent in one year compared with the 27 percent gain of the tech-heavy NASDAQ Composite in the same period. The technology sector has seen strong growth over the past year. However, investors should evaluate the stocks carefully before investing.

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