The federal government on Tuesday gave Palantir Technologies a higher rating for secure cloud computing services. On Tuesday, Palantir stock climbed on the news, continuing its 2024 rally. Shares dipped on Wednesday as investors took profits.
The higher authorization builds on Palantir's previous ratings and enables the U.S. government to process the most sensitive unclassified workloads in Palantir's cloud offering, the maker of data analysis software said.
"We're proud to have achieved the FedRAMP High milestone for our full product suite, including our award-winning AI Platform (AIP)," said Akash Jain, president of U.S. government business for Palantir, in a release.
Palantir stock rose nearly 7% on Tuesday. On the stock market today, Palantir stock fell 2.9% to 68.88. With Tuesday's gain, Palantir stock had surged 312% in 2024.
Palantir gets nearly 60% of its revenue from government agencies, mostly in the U.S.
Also on Nov. 7, Palantir and startup Anthropic announced a partnership with Amazon Web Services to provide U.S. intelligence and defense agencies access to its Claude 3 AI models.
Anthropic rival OpenAI also is targeting the defense market, the Wall Street Journal reported.
In October, Palantir formed a partnership with defense firm L3Harris.
Palantir Stock Technical Ratings
Palantir's Relative Strength Rating stands at a perfect 99.
Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
PLTR stock holds an Accumulation/Distribution Rating of A. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
As of Dec. 4, Palantir stock is very extended above an entry point of 29.83. Also, PLTR stock trades well above a 5% buy zone. Some investors may want to take profits.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
