Palantir (NYSE:PLTR) stock may be about to shake its five-day losing streak. The data analytics company has secured a new partnership that will give it valuable exposure to a new sector. Today, Palantir announced a multi-year partnership with Azule Energy.
An Angola-based company, Azule is one of its country’s leaders in the energy field. Now, it will be joining forces with Palantir to further optimize its upstream production through Palantir’s Foundry software. The energy producer is focused on growth and Palantir’s tools are poised to help the company achieve its goals for the coming year. While the news hasn’t boosted PLTR stock yet, that could easily change when markets adjust.
What’s Happening With PLTR Stock?
As noted, Palantir has been struggling lately. Despite its clear appeal as an artificial intelligence (AI) innovator, the company has spent the past five days trending more than 15% downward. Today, PLTR stock is down by about 10% as of this writing, although that can be attributed more so to negative market momentum. Many leading tech stocks, including Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA), are currently in the red as well.
Investors should be careful to see the bigger picture when it comes to Palantir’s news. The company is expanding into a new market, establishing a presence in a field with plenty of growth potential. Palantir is known for securing lucrative contracts with the U.S. Department of Defense and other government agencies. But as the AI boom continues, the company’s private-sector endeavors will only boost PLTR stock, helping it demonstrate sustainable growth.
InvestorPlace contributor Alex Sirois recently stated in an analysis of PLTR stock:
“[Palantir] is among the best-known analytics firms that serve the government and defense department through its Gotham and Foundry products. The software platforms have taken across government and the emergence of AI has opened a new dimension for the company’s future prospects.”
All told, the key takeaway from this latest Azule partnership is that Palantir isn’t just a stock built on AI hype. This is a tech sector sleeper with significant potential. Indeed, if the firm can establish itself as a trusted name in international energy markets, PLTR stock could stay well above the $20 mark.
On the date of publication, Samuel O’Brient 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.
