Shares in Palantir (NYSE: PLTR) are soaring pre-market this morning after the data giant announced a lucrative new army contract last night.
What does this mean for the stock…
…and how much is that contract worth?
The deal is worth a pretty penny, coming in at a whopping $823 million — which would be a little over 80% of the company’s total 2020 revenue.
Palantir will be providing the U.S. Army with its ‘Gotham’ platform —named after the fictional home-city of Batman — and according to the company, it will “support Army Intelligence users worldwide with a globally federated Intelligence data fabric and analytics platform spanning multiple security classifications.”
Despite a recent drive towards private contracts, Palantir still stands to gain from lucrative government contracts such as these and continues to win some impressive agreements with state agencies. In the past six months alone Palantir has signed the following:
- U.S. Special Operations Command, worth $111 million
- $90 million from a deal with the National Nuclear Safety Administration
- $32.5 million from the U.S. Space Force Command and
- A deal with the Federal Aviation Administration, worth $18.4 million
What’s more, experts estimate that demand from government agencies is only going to increase in the coming years following the fallout of major socio-political events such as Brexit and the COVID-19 pandemic.
However, at a valuation of $45 billion despite a lack of profitability, there’s no denying that Palantir is an expensive buy. However, many shareholders believe that Palantir’s massive growth opportunities justify the company’s high valuation.
Given the company’s growing dominance in both the commercial and government sectors, the stock is becoming more of a solid investment for long-term investors.
Find more growth opportunities by subscribing to MyWallSt today and checking out our shortlist of market-beating stocks. Click here to start your 7-day free trial so you can get on the path to financial freedom.
Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.