What Happened?
Shares of data-mining and analytics company Palantir (NYSE: PLTR) jumped 8.4% in the morning session after NATO acquired the company's (PLTR's) AI-powered Maven Smart System to improve its military capabilities. The Maven system, used by the U.S. military, applies advanced artificial intelligence to rapidly process and interpret massive volumes of battlefield data, enabling faster and more precise target identification.
This deal should not only strengthen Palantir's standing in the defense and AI but also validate its technology, reinforcing its credibility in both the defense and AI sectors.
For investors, the deal reinforced Maven as a critical growth catalyst, which could continue to boost Palantir's growth through further partnerships and contract extensions.
The shares closed the day at $92.63, up 4.7% from previous close.
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What The Market Is Telling Us
Palantir’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock dropped 6% on the news that the Bureau of Economic Analysis reported that the Fed's preferred inflation gauge (the Personal Consumption Expenditures (PCE) price index) revealed core inflation came in hotter than expected, fueling fear of stagflation (an economic situation of slow growth and rising prices). Core inflation excludes food and energy prices.
The Core PCE index showed inflation rose 2.8% (vs. estimates for a 2.7% increase) in February 2025 compared to the previous year and accelerated 0.4% (vs. estimates for a 0.3% increase) over the previous month. These figures added to concerns over proposed tariffs, which rattled markets. The combination of rising inflation and escalating trade tensions likely clouded the economic outlook, raising uncertainty for businesses and policymakers.
Palantir is up 22.1% since the beginning of the year, but at $91.80 per share, it is still trading 26.3% below its 52-week high of $124.62 from February 2025. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment worth $9,663.
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