Data analytics firm Palantir Technologies (NYSE:PLTR) is one of the most fascinating tech companies on the market today. And judging by the heavy daily trading volumes, it appears that the interest in PLTR stock is on the rise.
To sum it up concisely, Palantir Technologies is a big-data mining company that has had clients like the Central Intelligence Agency (CIA) and the Department of Defense. So, there’s something secretive and exciting about Palantir and its stock.
Don’t get me wrong. I don’t want to give the impression that Palantir is so secretive that investors can’t get reliable information about the company. There’s actually solid evidence that this is thriving as a business.
So, let’s go on a reconnaissance mission and gather some essential data about Palantir stock.
A Closer Look at Palantir Stock
Instead of providing all of the details on Palantir stock’s debut in the markets, I’ll refer you to InvestorPlace contributor Thomas Yeung’s comprehensive guide to Palantir’s initial public offering (IPO). I would say without a doubt that Yeung’s article is required reading for prospective investors in these shares.
Next, I should point out that Palantir stock started trading on the New York Stock Exchange on Sept. 30 via a direct listing. That might be an unfamiliar concept, so to help explain it, I’m going to borrow a quote that Yeung once sourced from Michael Lev-Ram:
“In a direct listing, a company doesn’t issue any new stock and therefore doesn’t raise additional money […] Instead, shareholders sell existing stock directly to the public, leaving investment banks to serve merely as advisers in the process and not underwriters.”
With that having been clarified, now we can home in on the price action of Palantir stock. First, we should note that the stock’s IPO price was a mere $9.50. And not much later, on Nov. 19, the PLTR share price literally doubled from the IPO seven weeks earlier, reaching $19.66 on that day.
By Dec. 23, Palantir stock was trading above $28. So, as you can see, the bulls have been firmly in control of the price action from the get-go.
Reaffirmed Partnership
Now, let’s check in on Palantir Technologies and its business dealings. Recent developments confirm that the company is pursuing and reaffirming high-dollar, value-added partnerships.
For instance, on Dec. 21, The Denver-based company announced that the U.S. Army’s Program Executive Office for Enterprise Information Systems opted to renew its partnership with Palantir on the Army Vantage program for a second year.
Back in December of 2019, the Pentagon chose Palantir to power a data analytics platform called Army Vantage. That production agreement was worth a whopping $458 million.
The more recent renewal is worth of the partnership is worth a total price of $113.8 million for the year. Not only will this collaboration provide a robust revenue source for Palantir, but it suggests that the U.S. Army is satisfied with the work that Palantir’s doing.
One Deal After Another
Could Palantir be called the ultimate deal maker? Judging from a recently secured contract, the Palantir stock bears might have to reconsider their position.
Very recently, Palantir Technologies signed a two-year contract with the U.K. National Health Service (NHS). The estimated value of this contract is $31.5 million.
In a statement, Palantir Foundry will provide the health agency with a software platform that’s designed to “enable NHS decision makers to best plan use of resources and improve patient care.”
It’s fair to say that Palantir is on a roll when it comes to striking value-added deals. Not too long ago, Palantir secured a contract from the U.S. Food and Drug Administration (FDA) to assist with drug reviews and inspections. That contract was worth $44.4 million.
The Bottom Line
The Palantir stock bulls have had much to celebrate lately. And I’m not just referring to the gains in the stock price.
Just as importantly, the bulls can rest assured that the company is striking deals that should stand Palantir and its stakeholders in good stead for quite a while.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
David Moadel has provided compelling content — and crossed the occasional line — on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.