Why Is Palantir (PLTR) Stock Outperforming the Market Today?

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  • Palantir (NYSE:PLTR) has moved higher today, despite an overall bearish trend building in the market.
  • The company announced it has resigned a contract with the U.S. Army.
  • This contract is expected to net the company $229 million in revenue this year.
PLTR stock - Why Is Palantir (PLTR) Stock Outperforming the Market Today?

Source: Sundry Photography / Shutterstock.com

In today’s volatile market, one of the best-performing stocks has been Palantir (NYSE:PLTR) stock, which is up just about 0.1% as of 2:00 p.m. Eastern.

With so much red blanketing today’s market, investors may correctly guess there’s a catalyst at play. Today, Palantir announced that it has resigned a “controversial” contract with the U.S. Army. This contract, which Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google business previously abandoned, delivers AI and machine learning capabilities for special forces.

Expected to be worth approximately $229 million over one year, this contract is one that Palantir investors clearly are cheering today.

Let’s dive into what to make of Palantir’s price action and this announcement today.

Is PLTR Stock a Buy Following Key Contract Renewal?

Palantir has been on a wild ride over the past year. Founded by billionaire Peter Thiel, its lack of profitability has resulted in a relative lack of interest from many conservative investors. That said, the company’s ties to the U.S. government (which always pay its bills) and its AI/ML capabilities have made this stock a favorite among speculators.

Like other meme stocks which soared at the beginning of last year, PLTR stock has been on a decline for some time. Despite rather steady and consistent revenue streams from a range of government contracts, Palantir hasn’t been able to turn a profit. In this risk-off market, where investors are seeking dividend-paying stocks with growing earnings, that’s not a good thing.

Perhaps this is the contract Palantir needs to break through. However, this is a company that’s just always seemed to find a way to print red. That said, today’s announcement clearly has some investors excited about what the future may hold with this beaten-down name.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/09/why-is-palantir-pltr-stock-outperforming-the-market-today/.

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