Palantir Has a New AI Deal. Why the Stock Is Dropping Anyway.
$Palantir Technologies Inc.(PLTR)$
Wednesday morning, the $46.7 billion Palantir said it would provide Eaton with its Artificial Intelligence Platform. Palantir sells software systems to the U.S. government and to companies that help them organize their data on a centralized platform so the customer can use the information effectively to manage its operations.
The deal, which builds on an existing relationship between the companies, aims to help Eaton prevent shortages in its supply chain. It is intended to make it easier for Eaton to organize and leverage its own AI-generated data to make decisions, specifically regarding its supply chain for the moment. Palantir's AIP platform is bundled with its other offerings and represents additional revenue for the company.
"Through the use of our software, we're excited to increase the adoption of AI in Eaton's operations and accelerate Eaton's impact in powering the clean energy and AI revolution," said Danny Lutkus, commercial lead for industrials at Palantir.
Palantir stock was down 2% Thursday, but probably not because the market views the news negatively. Futures on the technology-heavy Nasdaq 100 were down 0.6% in premarket trading, and Palantir is usually more volatile than the broader market. That is typical for high-growth companies
The company is winning a bigger share of the government's software spending and it is adding new products for its hundreds of commercial customers, which have increasing needs to manage their data. Analysts expect sales to grow 21% this year to about $2.7 billion.
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