There’s can’t miss news today in the tech space. Specifically, Palantir Technologies (NYSE:PLTR) just disclosed a big-money contract with the U.S. Department of State. It’s understandable, then, that PLTR stock traders were in a buying mood this morning.
Here’s the lowdown. The State Department selected Palantir to provide the Bureau of Medical Services (MED) with a “platform for effective data management and data-driven decision-making.” It’s a five-year contract with a total value of $99.6 million for Palantir.
Moreover, the company has been tasked with helping establish a new enterprise data management platform to be used by MED. This platform will be known as Project Axiom.
There are major national security implications here. Project Axiom will help to protect the U.S. diplomatic workforce and their families. So, let’s check in and see how Wall Street reacted to this news.
What’s Happening With PLTR Stock?
Early in today’s trading session, PLTR stock jumped around 3%, briefly breaking above the $8.50 level. However, shares soon gave up some of those gains. PLTR is just barely in the red as of this writing.
Perhaps, investors are still digesting the news surrounding Palantir and the State Department. At the same time, financial traders may have been selling stocks due to tensions over Federal Reserve Chair Jerome Powell’s recent testimony to the Senate Banking Committee.
PLTR stock is a tech stock, an asset class that’s particularly sensitive to Powell’s commentary. Still, it’s undoubtedly positive news that Palantir has scored another deal with the government. As the press release states, the company “first began working with the State Department in 2017.”
Is Palantir now the go-to source of software for the State Department? If it is, the company could continue to earn lucrative contracts in the future. Only time will tell whether this happens, but PLTR investors can still certainly celebrate today’s agreement worth nearly $100 million.
On the date of publication, David Moadel did not hold (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.