Palantir (PLTR) Is Finally Igniting Upward Momentum, but the Stock Is Not Out of the Woods Yet

Source: Shutterstock

Palantir (NYSE:PLTR), a Software-every bit-a-Service (SaaS) provider that specializes in big data integration and analytics, is practically flat for the year, with the stock undergoing periods of outstanding upward momentum followed past prolonged troughs.

All the same, Palantir bulls accept received a welcome waft of good news over the past few hours, which has played an important role in propelling the stock higher. At the time of writing, Palantir shares are up well over 8 pct in pre-market place trading.

Source: https://www.nasdaq.com/marketplace-activity/stocks/pltr

To wit, Palantir has now been selected by the The states Army'due south Program Manager for Intelligence Systems and Analytics to deliver "an operating system for defense decision making". The OS would exist built on Palantir's Gotham platform and would serve to aggregate data from "disparate sources". Should the project'south final testing keep smoothly, Palantir stands to proceeds $823 million in revenue from this contract award.

Every bit a refresher, Palantir currently has three master products. Its Gotham service integrates and transforms data, regardless of type or volume, into a unmarried, coherent data nugget. Moreover, the visitor's Foundry service removes the barriers between dorsum-cease data direction and front-end data analysis, thereby offering an integrated arroyo to interpreting vast information sets. Finally, the Apollo software solution powers Palantir'due south Gotham and Foundry SaaS services in the cloud.

While this Us Army contract honor is currently providing some much-needed upward thrust to Palantir shares, readers should note that the stock is non out of the forest yet.

First, Palantir is at present in danger of losing ane of its most lucrative contracts as the US Clearing and Customs Enforcement (ICE) is seeking to replace the FALCON – a surveillance program designed by Palantir on its Gotham platform and is used by Water ice to coordinate and organize its raids – with a new plan called the RAVEn, a custom-congenital tool that tech giants such equally Amazon, Microsoft, IBM, and Google, along with hundreds of other companies, are vying to develop. In the same vein, the agency is expected to soon announce contracts of up to $300 meg for the RAVEn program. Deport in mind that Palantir has earned betwixt $84 million and $111 million from the FALCON program. Should the company fail to stop up equally a RAVEn partner, it would lose one of its well-nigh lucrative sources of revenue.

Clouds are gathering for Palantir shares on the macroeconomic front equally well. With the Federal Reserve widely expected to initiate the tapering of its Quantitative Easing (QE) facility by next month, heralding an upward trajectory in treasury yields in the process, growth stocks – specially loftier duration ones – stand up to suffer. For context, high duration stocks are ones that offer a low dividend yield. As Treasury yields increase, the opportunity costs associated with holding high duration stocks also increase, thereby creating an incentive for investors to switch away from these stocks.

Of class, the next big goad for Palantir bulls would come up in the class of the company's Q3 2021 earnings, currently slated for the 18th of Nov.

Source: https://wccftech.com/palantir-pltr-is-finally-igniting-upward-momentum-but-the-stock-is-not-out-of-the-woods-yet/

Posted by: stoutsard1967.blogspot.com

Share this post