Palantir Stock Resumes Rally Following 2-Session Retreat Amid Deal Momentum: Retail Optimism Tempers

Palantir Technologies, Inc. ($PLTR) shares ignored a weak start and rallied sharply in early trading on Wednesday as traders took stock of a new partnership deal and a recent army contract. 

Denver, Colorado-based Palantir announced that daily prayer and faith-based content app Pray.com has partnered with the company to accelerate new product launches, especially in language translation.

The artificial intelligence (AI) - enabled data analytics company said the partnership will enhance content offerings while exponentially reducing time and costs.

Palantir’s AI Platform (AIP) processes Pray.com’s audio and video transcripts to incorporate translations at the quality of native language speakers, helping the latter to launch nine months’ worth of new product features in a few months and reduce content translation time from days to minutes.

Separately, media reports highlighted an army contract the company was awarded on Dec. 13. The U.S. Army Vantage System deal is for continuing the software-as-a-service model of the Army Vantage software developed by Palantir to meet the government’s requirements.

The contract will have a 12-month period of performance with an additional five-month options, plus a six-month option to extend services.

The Army Vantage contract is valued at $400.75 million should all options be fully exercised and has a ceiling of $618.87 million.

Palantir is the best-performing S&P 500 stock this year. After consolidating until July, the stock climbed steadily in early August. The rally’s slope steepened after the Nov. 5 presidential election.

The stock hit an all-time intraday high of $77.82 on Monday after the company was added to the Nasdaq 100 Index. It could not sustain the gains through the session and ended off its closing high of $76.07 it hit in the previous session. 

Palantir settled the past two sessions lower on the typical ‘buy-the-rumor, sell-the-news’ event. 

At last check, Palantir was seen up 1.88% at $75.79. The stock has gained about 333% for the year.

PLTR sentiment and message volume December 18, 2024, as of 10:37 am ET | Source: Stocktwits

On Stocktwits, sentiment toward Palantir stayed ‘bullish’ (56/100), although the degree of optimism waned from a day ago. Message volume dropped off to ‘normal’ levels. 

Some retailers eyed a break above $80 by the end of the week, hoping for a lift from the typical year-end Santa Claus rally.

Another found the Palantir stock move curious as they said the company recycles its press releases.

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