It’s been a rather rough day in the stock market for most investors. For those involved in retail favorites and former meme stocks, even more so. Today, shares of popular stock Palantir (NYSE:PLTR) are down considerably. At the time of writing, PLTR stock has lost more than 5% on another abysmal day in the market.
This move is a continuation of some pretty bearish price action for Palantir over the past year. Indeed, PLTR stock is now down more than two-thirds from its 52-week high (and even more so from its speculative rally early last year).
Rising interest rates and expectations of slower economic growth are hitting companies like Palantir hard. Until these headwinds change, investors appear to be bracing for more pain.
With that said, Palantir does have a rather interesting catalyst that investors are ignoring today. Let’s dive into what’s going on with Palantir right now.
What’s the Deal With PLTR Stock?
As mentioned, the market is providing its fair share of headwinds for companies like Palantir. Investors appear to be focused on the macro picture above all else.
However, from a company-specific perspective, Palantir does have an intriguing catalyst investors may want to know about. Today, Palantir announced that the company has struck a 10 million pound deal with the U.K. Ministry of Defense. For this data analytics company, this is the latest deal investors may point to as a reason to get into this stock at these levels.
Of course, the market disagrees. It’s a tough time to be a growth investor. However, Palantir’s various government contracts and secured revenues streams certainly provides an interesting growth story to jump onto.
Whether this means now is a good time to pick up PLTR stock on the dip remains to be seen. Personally, I’m skeptical of this company’s ability to truly grow its bottom line in the long term. However, this is a company that’s certainly a mover and shaker. I’ll be keeping an eye on Palantir moving forward with any additional updates that may change this thesis.
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.