Shares of data analytics company Palantir (PLTR) spiked after news broke it had landed a lucrative new $823m contract with the US Army. The contract will be focused on providing a digital intelligence data ecosystem. Palantir will be providing the Army with its Gotham Platform. According to a statement made by the company, the platform offers “modern data integration, correlation, fusion, and analytic capabilities that prepare the Army for the next fight against emerging near peer threats.”
The contract represents part two of the US Army’s “Capabilities Drop” operation. In 2018, Palantir and Raytheon (RTX) landed an $876m contract for Capabilities Drop 1.
why it matters
Investors celebrated the news of the contract, driving shares of PLTR up by as much as 8%. However, by the close of Friday's trading session, the share price had fallen to around where it had started the week.