As the rally in meme stocks rages on today, investors in a range of retail investor favorites are seeing very nice gains. However, investors in Palantir (NYSE:PLTR) stock are seeing a flat day, despite these market moves.
Accordingly, those who have been invested in Palantir for some time may be frustrated with this company’s price action. Indeed, this is a stock that has received a lot of attention on social media in recent months. It’s also a stock with a relatively high level of short interest presently. Thus, the fact this stock hasn’t moved on the recent incredible short squeeze bonanza we’ve seen may be ominous for investors.
Now, PLTR stock has moved more than 30% higher over this past month as investors have bought into the momentum trade again. Accordingly, there may be some indication that some of this sentiment is priced in. However, shares of PLTR stock are still down approximately 45% from their last short squeeze-inspired move earlier this year.
Another head-scratcher is the fact that Palantir has another catalyst today investors should be cheering about. Let’s dive into what this announcement is, and what to make of the recent moves in PLTR stock.
PLTR Stock Little Moved On Announced Contract Award
Today, Palantir announced it had renewed its partnership with the CDC for disease monitoring and outbreak response. This contract amounts to $7.4 million, with a one-year time frame. Thus, it’s relatively small potatoes in relation to the company’s overall business.
However, a contract is a contract. And as Palantir investors know, retaining positive relationships with government officials and organizations is of utmost importance to its long-term growth prospects.
The company notes it has maintained a partnership with the CDC for more than a decade. Thus, this contract should certainly be taken in the context of a broader long-term relationship with U.S. federal health agencies.
Whether this contract leads to additional work remains to be seen. However, it appears investors are looking the other way today with respect to this news.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
