Investors are keeping an eye on Palantir Technologies (NYSE:PLTR) this morning after the software firm was named as a supplier on a key United Kingdom government contract. PLTR stock has been trading in a narrow range since steep declines in mid-February.
The Crown Commercial Service recently introduced a back office software framework for government and related entities to purchase software subscriptions and license support for back office systems direct from software vendors. All of Palantir’s software-as-a-service (SaaS) products, including its Foundry’s Enterprise Resource Planning (ERP) Suite, are available via the framework.
Palantir said its inclusion in the government buying program reflects its efforts to increase “investment and presence in the U.K. and the multiple uses its software has for its government customers.” The BOS Framework adds to the list of CCS and U.K. government frameworks which can already be used to purchase Palantir’s SaaS products.
PLTR Stock’s Recent Troubles on U.K. Health Service Work
In March of last year, Palantir was contracted by the U.K. National Health Service to use some of its data solutions for the country’s Covid-19 response. In December, Palantir’s short-term contract was extended for two years.
The moved raised some skepticism among watchdog groups about the integrity and safety of U.K. patient data. Palantir’s ties to the CIA were cited as a key reason for such skepticism. One group, Open Democracy, sued the British government alleging that it entered into a secretive deal with a “spy tech” firm.
The NHS shot back on the claims and after a very public battle of words, the suit was withdrawn. The health agency praised Palantir for helping analyze large volumes of data generated by governments and businesses. Through Palantir’s analysis, “useful insights patterns and connections” were able to be made in the fight against Covid-19.
In the near three weeks since the NHS issued its endorsement of the SaaS firm’s help, PLTR stock has gained 2.68%.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News, McKinsey & Co. and McDonald & Company Investments.