- PLTR stock ended Thursday up 9.9% at $9.30.
- Palantir stock fell almost 17% in May due to dismal Q1 results.
- A recent contract with US Space Systems Command adds $54 million in revenue.
Palantir (PLTR) $Palantir Technologies Inc.(PLTR)$ stock experienced a welcome reprieve from May's glum share price descent on Thursday with the big data company's share price closing up 9.9% at $9.30. The rally appeared on account of Palantir securing a follow-on contract with the US Space Systems Command (SSC) worth $53.9 million. Shares have retreated 1.3% in Friday's premarket to $9.18.
Palantir Stock News: US government contracts just keep on coming
Investors on Thursday decided to put May's disgraceful 16.5% slide behind them as Palantir announced a nine-month continuation contract with theSSC's Battle Management Command, Control and Communications division (BMC3)agreeing to continue last year's $121.5 million contract through March 2023. The nine-month contract for nearly $54 million demonstrates how much big US government agencies are interested in continuing their expensive contractual relationships with Palantir. This constant barrage of government contracts is placing Palantir in league with the largest US defense contractors.
Palantir said the contract extension "ensures the continuous delivery of Palantir’s data and decisions platform to support national security objectives." The company provides institutions with a wide variety of data systems in specialized and personalized software as a service (SaaS) platform.
The current contract will aid "mission areas within theAir Force,Space Force, andNORAD-NORTHCOMto integrate, clean, share, and leverage data to help make decisions on personnel management, strategic and operational planning, cross-space situational awareness, and collaboration across combatant commands", according to a statement from management.
Palantir stockmarket spike was helped by a continuation of the currentbear market rallythat saw all three major indices move substantially higher.
Palantir Stock Forecast: $10 is the price to beat
Palantir stock bulls must be quite excited with the near 10% move on Thursday, but resistance at $10 looms ever closer.PLTR stockhas been in a parallel descending price channel since October of 2021. Breaking through $10 on the dailychartbelow would upend that seven-month tyranny and give bulls a shot at an extended rally. Breaking through the target would give longs a shot at the $14.85 high from April 5. A sign that this may be in the cards is that the 9-day moving average just caught up with the 21-day moving average on Thursday.
Where the two moving averages crossed – $8.36 – might now provide some support. If not, then PLTR could sell off to the May 12 low at $6.45 in the event of a broad market downturn. With Jamie Dimon and some other influential bankers and CEOspredicting a bad turn in the second half of the year, this remains a real possibility.PLTR stock still deserves a buy, however, for the moment if it breaks the $10 resistance level.
source: fxstreet
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