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What’s Going on With Palantir (PLTR) Stock Today?

  • The U.S. Army renewed an existing contract with Palantir (PLTR).
  • The two-year deal will generate $99.9 million of revenue for the company.
  • PLTR stock is falling in morning trading.
PLTR stock - What’s Going on With Palantir (PLTR) Stock Today?

Source: Sundry Photography / Shutterstock.com

Palantir Technologies (NYSE:PLTR) announced earlier this morning that the U.S. Army would broaden an existing contract with the company. The deal will generate nearly $100 million of revenue for Palantir over two years. Despite the extension of the project, PLTR stock is falling 1% in mid-morning trading.

The Deal and Its Impact on Palantir

Under the contract, Palantir will install “data and artificial intelligence (AI)/machine learning” tools for the Army’s combatant commands (COCOMs). Palantir began partnering with the Army on those types of projects in 2018.

Notably, the company generated $1.54 billion of revenue in 2021, so a renewal of a contract that’s worth an average of $50 million of sales per year probably won’t move the needle much when it comes to its financial results and PLTR stock. The news, however, could ease Wall Street’s worries about the slowing growth of its government deals in recent quarters.

Palantir did not indicate whether and to what extent the compensation that it will receive from the Army over the next two years will differ from the payments that it has obtained in previous years.

“We’re looking forward to fielding our newest ML, Edge, and Space technologies alongside our U.S. military partners,” said Shannon Clark, senior vice president of federal innovation. “These technologies will enable operators in the field to leverage AI insights to make decisions across many fused domains. From outer space to the sea floor, and everything in between.”

Raymond James Is Bullish on PLTR Stock

Raymond James, a financial services company, recently stated that PLTR stock “can double.” The firm started coverage of the shares with a “strong buy” rating and a price target of $20.

On the date of publication, Larry Ramer 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/whats-going-on-with-palantir-pltr-stock-today/.

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