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PLTR Shares Up 6.5% in Pre-Market after Palantir Inks Major Contract with US Army

Denver Colorado-based American software company that specializes in big data analytics, Palantir Technologies Inc (NYSE: PLTR) has inked an intelligence program contract with the US Army, pushing its shares up by 6.33% in the pre-market after paring off some of the gains accrued earlier in the day. At the time of writing, Palantir shares are changing hands at $24,68 in the pre-market.

The US Army deal is worth about $823 million, and it will see the software and intelligence development platform deploy its Gotham platform, built as “an operating system for defense decision making and is specifically designed to connect the dots between disparate sources,” as gleaned from the statement issued by the firm.

The company also noted that the Gotham platform will “support Army Intelligence users worldwide with a globally federated Intelligence data fabric and analytics platform spanning multiple security classifications.”

Palantir is known to provide software intelligence for enterprises around the world. While it counts several government agencies as its clients, it is also a global player in enterprise software design with active partnerships with outfits like 3M, Akin Gump, Rio Tinto, and Fujitsu Limited amongst others. While Gotham is one of its prominent platforms specifically dedicated to decision making, it also has uniquely designed softwares including the Foundry, an Operating System for the modern enterprise, as well as Apollo, which is an OS for continuous delivery.

The current contract with the US Army is noted to be a part of the Army’s Capability Drop 2 Program and makes up one of the many areas Palantir is collaborating with the military.

“We look forward to the continued partnership with [Program Executive Officer Intelligence Electronic Warfare & Sensors] and the Army’s Intelligence Community in providing new and exciting technology that help them in their modernization efforts,” said Doug Philippone, Palantir’s global defense lead.

Palantir US Army Contract: Good Ticker for Growth

Palantir was founded in 2003, and effectively was operating as a privately held company up until last year when it went made its stock market debut through an Initial Public Offering (IPO) that may have plunged the company’s stock more than its right valuations.

With Palantir’s business model more centered on B2B, its continued relevance is dependent on the firm’s ability to not just onboard new clients, but to welcome high-paying ones. The latest contract with the US Army was one of the tests of the company’s relevance as the deal was awarded following a successful collaboration on a “Test, Fix, Test” process.

Besides the CD-2 program, Palantir is also working with the army on its Capability Drop 1 (CD-1) program, and the Tactical Intelligence Targeting Access Node (TITAN) programs respectively.

With Palantir’s efforts to drive up its client base in the last year, its shares are notably up 157% over the past 12 months, a good uptick when compared with the 27% growth of the S&P 500 (INDEXSP: .INX).

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PLTR Shares Up 6.5% in Pre-Market after Palantir Inks Major Contract with US Army