What Happened: Shares of data and analytics company Palantir (NYSE:) jumped 9.1% in pre-market trading after the company announced it had received a $178 contract from Army Contracting Command-Aberdeen Proving Ground. .4 million dollars for development. and supply of the Tactical Intelligence and Targeting Ground Station (TITAN) system. According to the press release, the agreement covered the development of “10 TITAN prototypes, including five Advanced and five Basic variants.
The system is expected to have artificial intelligence and machine learning capabilities to “improve mission control and long-range precision fires by providing actionable targeting information from a variety of sensors.”
Overall, this announcement highlights the growing demand for Palantir’s AI platform and the strength of its capabilities in the government vertical.
Is it time to buy Palantir? Find out by reading the original article on StockStory..
What the market is telling us: Palantir stock is highly volatile, with moves of more than 5% 39 times in the last year. In the context of this, today’s movement indicates that the market considers this news to be significant, but not one that will fundamentally change its perception of the business.
The previous big move we wrote about came 28 days ago, when the company’s shares rose 8.8% after a sustained rally following the company’s strong results, which highlighted growing demand for its artificial intelligence solutions.
In addition, the major indices rose, with the S&P 500 breaking 5,000 for the first time. Earnings season started with positive reports from tech giants including Microsoft (NASDAQ:), Amazon (NASDAQ:) and Meta (NASDAQ:). These encouraging results are expected to help support growing optimism driven by expectations of positive growth in 2024, especially for artificial intelligence-related stocks. There is also hope that the Fed will begin cutting rates in the first half of 2024, which should help ease conditions for businesses.
Recall that the driving force behind stock price is the sum of future cash flows discounted to today. With lower interest rates, investors can increase the valuation of their stocks. It’s no surprise that many in the investment community are optimistic about 2024. We at StockStory remain cautious as following the crowd can lead to unfavorable results. In times like these, your best bet is to own high-quality, profitable companies that can withstand the ups and downs of the market.
Palantir shares are up 56.2% year to date. Investors who bought $1,000 worth of Palantir shares at the September 2020 IPO will now be looking at an investment worth $2,727.