Palantir Technologies, Inc. (NYSE:PLTR) stock has been on a tear since Friday when it was initiated with a bullish recommendation by Wedbush analyst Daniel Ives.
The momentum spilled over into Monday’s session and could potentially extend to Tuesday. The immediate catalyst fueling further upside could be a contract win.
What Happened: Denver, Colorado-based Palantir announced Monday after the close that it was selected by the Department of Defense to support coordination between federal and commercial licensees of the 3450-3550 MHz spectrum band.
The data analytics software provider said it would provide its software platform to enable end-to-end automation for enhancing coordination between DoD and commercial spectrum licensees for the shared use of the spectrum band.
Delving into the benefits it can bring to the table, Palantir said its software will integrate multiple existing functions and capabilities into a single infrastructure, resulting in more efficient workflows, and reduced timelines for the licensee coordination with DoD. The software can also be used to demonstrate the ability to support more advanced spectrum-sharing use cases.
The two parties did not disclose the financial terms of the deal.
Why It’s Important: The contract assumes importance as the government segment is a major revenue earner for Palantir. In the first quarter that ended on March 31, the segment contributed 55% or $289 million to the total revenue and grew at a faster clip of 22%. Specifically, U.S. government revenue rose 22% to $230 million.
While initiating Palantir at an Outperform, Wedbush’s Daniel Ives called the company as the “Messi of AI.”
Given the company’s extensive experience handling customer data, its transition to a pure-play AI name will leverage its existing expertise to drive advancements and deliver AI solutions powered by high-quality data, the analyst said.
The company is scheduled to report its second-quarter results on Monday.
According to Zenger News Pro data, Palantir stock jumped over 10% on Friday and gained an incremental 11.40% on Monday before ending at $19.84. This marked the highest close since Nov. 30, 2021.
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Produced in association with Benzinga
Edited by Jason Reed and Kyana Jeanin Rubinfeld
