The pipeline for new deals and partnerships at Palantir (NYSE:PLTR) continues to flow in June, with this morning’s news of a collaboration with augmented intelligence firm DataRobot. PLTR stock has gained 14.5% so far this month.
The partnership will focus on bringing demand forecasting solutions to retailers that have seen their traditional supply chain tools unable to keep up with the speed of change in consumer demand and shipping logistics over the past year.
Palantir and DataRobot are developing a new framework that will enable a more nimble strategy for demand forecasting, eliminating the time and resources spent on manual data cleansing and one-off manual modeling, they said in this morning’s announcement.
The framework will use Palantir Foundry’s Software Defined Data Integration to integrate multiple massive-scale existing data sets, to quickly create a high-quality data asset. That asset is then fed into DataRobot’s augmented intelligence technology, which “trains” and produces hundreds of forecasting models in the time it would take a data scientist to produce one.
It remains to be seen if investors will get excited about this announcement, which didn’t have any financial details, nor an estimate size or scope of the potential market for such a collaboration. One of the knocks on PLTR stock is that the firm does not have easy products for its customers to grasp. Additionally, Palantir not only needs to continue rewarding its talented staff with share-based compensation, but it must also continuously hire new employees. It needs more support and engineering staff to help its customers implement products.
Small Deals Stoke Sentiment for PLTR Stock
Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen and Alex Karp founded Palantir in 2003. Since Thiel was an early angel investor in Facebook (NASDAQ:FB), some investors have concluded that Palantir will be a major winner.
PLTR stock is more than double the price since its September initial public offering. But having fallen from its late January $45 high, the stock was hurt by the Nasdaq’s sudden correction that began in February.
Still, Palantir’s contract wins and partnership deals have continued to drive sentiment towards the name higher.
Last week, the company announced a one-year, $18.4 million contract win with the Federal Aviation Administration. That deal will have Palantir monitoring various safety aspects for the FAA. That includes reintegrating the 737 MAX fleet back into service after it was suspended due to fatal crashes.
While the shares didn’t react immediately after that news, PLTR stock has added 3.22% in the four days since. The shares gained 17.8% in the days immediately following the May 24 announcement that the U.S. Space Force had given the company a $32.5 million contract.
On the date of publication, Robert Lakin 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.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.
