Why Is Palantir (PLTR) Stock Up 10% Today?

  • Palantir (NYSE:PLTR) surged more than 10% today.
  • This move occurred after the company announced it was awarded a larger contract from U.S. Space Systems Command.
  • This expansion of scope has resulted in an additional $53 million of revenue being added to Palantir's backlog.
PLTR stock - Why Is Palantir (PLTR) Stock Up 10% Today?

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It’s been another volatile session in the stock market today. For investors in Palantir (NYSE:PLTR) and PLTR stock, fortunately, this volatility has been to the upside.

Today, Palantir announced U.S. Space Systems Command (SCC) has awarded the company with an additional $53.9 million for its existing national security contract. This increase is on top of an existing $121.5 million contract, bringing the value of Palantir’s work to more than $175 million for this client alone.

As a major player in the big data space, part of Palantir’s allure has been the company’s close connections with big government agencies. As far as revenue stability is concerned, this plays significantly into the company’s bull thesis. Indeed, this data-as-a-service company has become a meme stock in its own right, surging during last year’s impressive rally.

Does this announcement make for the start of another rise in PLTR stock? Let’s dive into what to make of this update.

PLTR Stock Soars on Yet Another Contract Expansion

Contract modifications happen all the time. When a client likes the work a given company does, expanding the scope of said work results in more dollars. Whether we’re talking about big data or other industries, this is obviously a good thing.

However, for Palantir, it’s perhaps less about the money than who the client is. This expansion of work is aimed to assist the Air Force, Space Force and NORAD-NORTHCOM to better utilize and synthesize data. Improving decision making is a big deal. But when we’re talking about the military, this work ought to be extremely important and profitable.

With geopolitical tensions ramping up, having various branches of the U.S. military on one’s client list can be a good thing. War is terrible, and war profiteering may be viewed negatively. However, if Palantir’s technology can save lives, there could be an altruistic silver lining to draw from all this.

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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2022/06/why-is-palantir-pltr-stock-up-10-today/.

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