Why Palantir Stock Stumbled Today
Two days after announcing that it won a new contract from the U.S. Army, one of the most reliable customers in the world, Palantir Technologies (NYSE: PLTR) stock fell by almost 2% on Thursday. That morning, one analyst opined that the deal isn't as impressive for the data analytics specialist as it might appear, and investors clearly took this to heart.
That analyst is William Blair's Kamil Mielczarek, who evaluated the contract in a research note. He wrote that, "While this deal is incrementally positive for Palantir, it makes up only 1%-2% of last-12-months' revenue and does not grow total deal value at a fast enough rate to return total government revenue growth to 30%."
The contract, in which Palantir is one of two participants, is worth $36 million. It covers the development of a prototype Tactical Intelligence Targeting Access Node (TITAN), which, when complete, will be the first intelligence ground station to be powered by artificial intelligence and machine learning.
Source Fool.com
