Palantir Eyes Snapping 3-Day Losing Streak: Stock Rises Premarket After Report Of Major UK Deal During Trump Visit
Synopsis
The report also said the company has pledged to invest 1.5 billion pounds in the U.K. by 2030 to build on its existing work across health, policing, defense and other sectors.
Palantir Technologies, Inc. (PLTR) stock rose over 2% in the early premarket session on Thursday, as traders reacted to a report of an expanded partnership with the U.K. defense ministry and the company’s commitment to invest in Europe’s second-largest economy. The news came amid U.S. President Donald Trump’s state visit to the country.
A Bloomberg report, citing a person familiar with the matter, said the Alex Karp-led company is close to finalizing a £750 million ($1.02 billion) contract with the U.K. Ministry of Defense, replacing a current £75 million deal that is set to expire.
The report also noted that the company has pledged to invest 1.5 billion pounds in the U.K. by 2030 to build on its existing work across health, policing, defense, and other sectors. This would generate about 350 jobs in the domestic economy, with 200 of those at Palantir. More details of Palantir’s U.K. partnership would be announced on Thursday, Bloomberg said.
Palantir, once a reluctant player in the U.K. due to the country’s slow adoption of artificial intelligence (AI), has since changed its stance. Karp and CTO Shyam Sankar have turned more inclusive, citing the geopolitical conflicts and tensions Western democracies face, the report added.
On Stocktwits, retail sentiment toward Palantir stock has remained ‘neutral’ (48/100) by early Thursday, and the message volume stayed at ‘low’ levels.
Palantir stock is up about 123% year-to-date, although the stock has been moving roughly sideways since mid-August amid concerns about valuation. Citron Research’s Andrew Left said last month he had shorted Palantir, adding that even if generously valued, Palantir stock is worth only $40.
The average analysts’ consensus price target for Palantir is $151.74, according to Koyfin, suggesting roughly 10% downside from Wednesday’s close.
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