Palantir (NYSE:PLTR) stock is down today despite inking a new deal to become Starlab Space’s exclusive supplier of enterprise-wide software data management solutions.
What does this mean for the analytics company?
Well, it gives Palantir a hot new contract to help its business and a potential entryway into several notable companies. Indeed, Starlab Space represents the global joint venture between Voyager Space, Airbus (OTCMKTS:EADSY), Mitsubishi, and MDA Space.
As part of the new partnership, Palantir will use artificial intelligence (AI) technology to optimize Starlab’s enterprise operations.
PLTR Stock Slides In Otherwise Strong Year
PLTR stock is down about 0.8% at the time of writing, a meager pullback in a notably strong year for the company. Indeed, Palantir is up a staggering 58% year-to-date, dwarfing the S&P 500’s 15%. PLTR has enjoyed a tremendous year thus far, fueled by some promising new deals.
This especially includes a slew of new commercial sales, which have replaced some of the slowdown in contracts with the U.S. government. Indeed, following Palantir’s fourth-quarter earnings report in February, PLTR stock surged more than 30% in just a day, a jump that the stock has yet to come down from.
Palantir has also enjoyed plenty of analyst love recently. Indeed, Despite being denounced as “highly volatile and priced at a premium,” Argus Research Analyst Joseph Bonner initiated coverage of PLTR with a “buy” rating and a $29 price target last week. According to Bonner, PLTR represents a “highly differentiated” investment and stands to benefit tremendously from new AI-powered utilities.
“Management noted that the strong margin expansion reflected the robust unit economics of Palantir’s business,” Bonner said. “We would also note that the company is giving the market what it wants in terms of margin expansion and profitability.”
Heading into the second half of the year, PLTR fans are surely hoping the company continues to enjoy gains like it has had thus far.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
