Palantir (NYSE:PLTR) has been climbing higher in recent weeks because of its potential with the U.S. federal government. Today, PLTR stock is soaring for a different, more international reason. So if you are a fan of the red-hot company, what do you need to know?
Although Palantir continues to trend higher, news today is certainly helping the bull case. So what was that news? Well, the company shared that it has reaffirmed a partnership with the Greek government.
Essentially, since the start of the pandemic, Palantir has been working with the Greek government. Using its Foundry software platform, Palantir has guided government officials in data-driven decision-making surrounding the novel coronavirus.
What does this mean? Well, Palantir says its Foundry platform makes data more accessible, combining a variety of databases with insight and analysis. For the Greek government, this looked like a crisis dashboard that provides a real-time look at the state of Covid-19.
Apparently, Greece likes this dashboard. This morning, Palantir announced that CEO Alex Karp and Greek Prime Minister Kyriakos Mitsotakis recently spoke about the partnership. The result is that Palantir will continue to work with the government as the pandemic evolves. Although it is unclear just what this partnership will look like, it sounds as if PLTR stock is benefitting from plans to keep providing data integration and analytics.
Why Does This Matter for PLTR Stock?
There are two answers to this question.
The first is that, simply enough, investors want to see Palantir continue to expand and form meaningful partnerships. Although no financial details were disclosed this morning, it looks like Palantir is helping the Greek government and expanding on an initial partnership. PLTR stock therefore is up more than 12% in intraday trading.
However, as we explored in recent weeks, Palantir is working to rebrand itself. What does this mean? Well, the company is shrouded in secrecy, and oftentimes, controversy. Whether that means support for President Donald Trump, criticism of Silicon Valley culture or contracts with the CIA, Palantir gets its hands dirty while providing law enforcement and surveillance solutions.
In many ways, it appears that investors want to see Palantir leverage the upcoming inauguration of President-elect Joe Biden. Biden could usher in a more stable era for the U.S. Department of Defense. He could also incentivize agencies — through budget cuts — to work with lower-cost solutions. Some experts think this means Palantir will benefit because its software often is cheaper. A good test of this will be just how easily Palantir can rack up new partnerships and expand the old.
Although the company has been building new deals with the U.S. Army, the news today suggests Palantir has potential beyond the U.S. borders. As we wait for the inauguration and see just what that means for the Pentagon, PLTR stock benefits from its Greek endeavors.
At the time of this writing, PLTR stock was up 12.5%.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.