Palantir stock rose as much as 8.7 percent on Wednesday after the company struck a lucrative contract with the US military.
The secretive Silicon Valley firm, which was co-founded by tech tycoon Peter Thiel, said late Tuesday that the military would pay $823 million for its “Gotham” platform, a data and analytics system that was sourced from different sources. Designed to help process large amounts of information. .
“This capability will frontline modern data integration, correlation, fusion and analytical capabilities that prepare the military for the next battle against near-term threats,” Palantir said in a release.
Palantir, which went public last year and is worth $47 billion, won a contract with UK defense company BAE Systems. Both the companies were named as finalists for the deal in February 2020.
Palantir’s stock was trading 4.5 percent higher at $24.26, while BAE’s stock fell 1.3 percent to $30.66, according to data from MarketWatch, about 30 minutes after the market opened on Friday.
Palantir, which relies largely on contracts with government agencies for revenue, has never reported an annual profit in the 17 years since its inception. That hasn’t stopped its stock from rising 163 percent since the company went public last September.
Palantir’s CEO, Alex Karp, earned more than $1.1 billion in total compensation in 2020, making him one of the highest-paid CEOs in history.