Palantir Technologies PLTR>, a big data analytics company, is perhaps best recognized for supplying counter-terrorism intelligence to US government agencies. There are, however, additional factors to consider for PLTR stock investors.
Palantir does not only cooperate with the government, for one reason. Indeed, the company has formed business relationships with a number of private companies.
In a completely unrelated subject, PLTR stock has piqued the eye of certain Reddit and Robinhood traders. If a short squeeze occurs, the stock price could skyrocket.
Finally, because Palantir has invested in a variety of firms – and if you’re a shareholder, you’re indirectly investing in those businesses as well – there’s a headline that’s getting buried.
PLTR Stock: A Closer Look
To recap, the PLTR shares began trading on the New York Stock Exchange via a direct listing on September 30, 2020.
For a while, the shares clung at the $10 mark, but eventually the purchasers grabbed over. The stock hit a 52-week high of $45. on Jan. 27, 2021.
I’ve said it before, and I’ll say it again: price chasers are frequently penalized. The stock PLTR is a perfect example of this, as it quickly retraced back to around $24 in February.
Waiting for a recovery hasn’t worked out so far. Palantir’s stock was still trading at $24 and change as of July 2.
On the other hand, among technical traders, there is an old adage that the longer the base, the higher in space.
Perhaps, therefore, PLTR stock is poised for a strong upward rise.
With that in mind, let’s examine whether anything is happening at Palantir that can pique investor interest and, as a result, drive up share prices.
High-ranking associates
Palantir’s collaboration list appears to be rising all the time. It’s difficult to keep track of the company’s client list.
I’ll give you an example of a huge win for Palantir recently. The business announced a contract with the Federal Aviation Administration on June 18. (FAA).
Palantir will reportedly supply a data analytics solution to aid the FAA’s modernization goals for aviation safety.
It’s a one-year contract with two more option years, with a total value of $18.4 million.
The Palantir Foundry platform will also assist the FAA with aircraft certification and ongoing operational safety initiatives. This includes, among other things, continual monitoring of the 737 MAX fleet’s reintroduction to operation.
Palantir USG President Akash Jain claimed his business is “glad to be cooperating with the Federal Aviation Administration to support their important safety mission,” which is understandable.
This might be a game-changer for Palantir, as it positions the company as a go-to provider of data analytics services in the aviation industry.
An Unexpected SPAC Investor
Now it’s time for something altogether different. Palantir is a frequent investor in special purpose acquisition companies (SPACs), which I’m sure you didn’t know.
In fact, I should be more specific in my language. Palantir has invested in at least eight organizations that are merging, have merged, or will combine with SPACs, quietly but forcefully.
According to a 10-Q filing, these companies have a total of $132 million in PIPE (private investment in public equity) interests.
If you’re a present or potential PLTR stockholder, you should be interested in learning more about these companies. In no particular order, here are the ones I’m aware of:
Provider of connected car information services Wejo is an online reseller of consumer goods that are offered in bulk. Boxed.com
Provider of digital therapy with a prescription Pear Therapeutics is a specialist in app-based healthcare delivery. Health in Babylon
Developer of electric-powered air taxis based in Germany Lilium
a biopharmaceutical firm Pharmaceutical company Roivant Sciences Sarcos Robotics is a company that develops industrial robots.
As you can see, a Palantir investment is more varied than you may think.
Final Thoughts
Markets are strange and lovely places. Who’d have guessed Palantir would become a forward-thinking SPAC target company investor?
It’s surprising, but it’s true. PLTR stock allows traders to avoid the meme-stock noise and invest in one fantastic firm – and at least eight diversified ones – instead.
The stock market may be unexpected, volatile, and downright ridiculous at times. InvestorPlace.com aims to cut through the clutter and provide you with information that matters – and how it affects your portfolio. We cover everything from equities to cryptocurrencies to pre-IPO investments with care. InvestorPlace.com has your back, whether you live and breathe stock news or want your stocks to pay you.
David Moadel did not hold any positions in the securities mentioned in this article (directly or indirectly) at the time of publishing.
On Tuesday morning, PLTR shares were trading at $24.65 per share, up $0.21 (+0.86%). PLTR has gained 4.67 percent year to far, compared to a 16.56 percent rise in the benchmark S&P 500 index.
David Moadel is the author of this book.
On behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com, David Moadel has supplied intriguing information – and occasionally crossed the line. He also works at Portfolio Wealth Global as the principal analyst and market researcher, and he presents the prominent financial YouTube program Looking at the Markets. More…More Information on the Stocks Mentioned in This Article/n
