Data analysis firm Palantir (NASDAQ:PLTR) is in the news today, and PLTR stock is climbing about 4.5% after another year was added onto its Vantage contract with the U.S. Army. The extension, which was reportedly not anticipated by PLTR, could provide the firm with as much as $115 million.
The original four-year contract was worth $458 million.
More About Vantage
The Vantage project involves efforts by the Army to increase its utilization of data. Additionally, Palantir noted that it would enable the army to use artificial intelligence (AI) to analyze data. The head of Palantir’s federal business, Akash Jain, said this in a statement about the surprise contract extension:
“This extension is evidence of the value we bring to the nation’s defense, including our joint efforts to provide more commercial technology providers the opportunity to equip soldiers with the innovation they need to meet their most pressing challenges.”
Additional Information About Palantir and PLTR Stock
Last month, the United Kingdom’s National Health Service (NHS) provided Palantir with a seven-year contract worth about 336 million British pounds. Under the deal, Palantir will help the NHS create a new software tool.
However, PLTR stock fell on the news, with some on the Street noting that earlier reports suggested the deal would be worth up to 480 million British pounds.
Also noteworthy is that contrary to widespread speculation, PLTR stock was not incorporated into the S&P 500 when the index was expanded on Dec. 1. Palantir’s CEO and CFO themselves had suggested that the firm could be added to the index.
PLTR stock has a rather high forward price-earnings ratio of 61.7, while analysts, on average, expect its earnings per share to climb to 29 cents in 2024 from 25 cents this year.
PLTR stock is up almost 200% year-to-date.
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.
