Palantir (NYSE:PLTR) stock is in the news after the company announced yesterday afternoon that it had been selected by the Pentagon to enhance coordination between the Department of Defense and companies that utilize the 3450-3550 MHz spectrum band. The company did not disclose the revenue that it will obtain from the deal.
Under the agreement, Palantir will deploy “its software platform to enable end-to-end automation that will enhance coordination between the Department of Defense and commercial spectrum licensees for shared use of the 3450-3550 MHz band.”
The company’s platform will help enable the firms that obtained the spectrum in auctions and the Department of Defense to jointly utilize the technology. Additionally, Palantir’s software will make sharing the spectrum more efficient while facilitating telecom firms’ implementation of 5G technologies, the company stated.
“As military and commercial use of radio-frequency spectrum continues to grow, spectrum coordination will be increasingly necessary to preserve the effectiveness of critical national security capabilities while enabling U.S. commercial leadership in 5G and other critical technology areas,” Miriam Marwick, Palantir’s SVP, Emerging Technologies, said in a statement.
What PLTR Stock Investors Should Watch
The investors who have taken a position in PLTR stock or are considering doing so should try to gauge the extent to which the company’s extensive business with the federal government is growing and accelerating.
More generally, these investors should try to determine whether Palantir’s new artificial intelligence (AI) platform and its other offerings are gaining market share within both government and commercial markets.
Investors should also consider that, with PLTR stock changing hands at a forward price-to-earnings ratio of 90 and a trailing price-to-sales ratio of 21, the shares are far from cheap.
On the date of publication, Larry Ramer 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.
