Shares soared on Monday after the data analytics software company announced it had been awarded a contract to supply technology to United States Special Operations Command.
News of the multi-year deal, worth up to $463 million, has been sent
(ticker: PLTR) shares up 4.9% to $15.23. The new contract builds on the company’s previous work with Special Operations Command, according to a Palantir spokesperson.
The company said it “is driving rapid innovation” in its defense portfolio, making advancements in large language models “to reduce the cognitive load on warfighters and commanders; as well as advancements in edge processing and artificial intelligence to maximize the warfighter’s ability to integrate and utilize real-time information.
However, analysts at William Blair are less optimistic about contract news and the business as a whole, writing that the deal won’t materially affect revenue and maintaining an underperforming rating on the title. Pressure points for the company include churn for other contracts and increased competition from other vendors, analysts noted.
Last month, Palantir reported better-than-expected first quarter results, raised its financial guidance and touted its recently announced artificial intelligence platform, AIP.
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