Palantir Stock (PLT) – Get a free report have been volatile in recent trading.
In the three trading sessions through Wednesday, shares fell about 15%; It closed on Friday at $20.27 and on Wednesday at $17.13. At last check, shares of the data analytics software giant rose to trade around $17.28. (From 2023 through Wednesday, the stock has more than doubled.)
The recent drop followed a note from William Blair analyst Louie DiPalma, in which he warned that Palantir's dealings with the US military could soon see a reduction of sorts.
The technology company signed a $458 million contract with the military in 2019. The contract is set to expire in the coming weeks.
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Comments made at a recent industry event, where the Army discussed plans to maximize the use of open source vendors, indicated to DiPalma that any contract renewal will be priced well below the current one.
The analyst, who says “friction” between the Army and Palantir is increasing over data ownership issues, says the Army will offer a cheaper two-year contract when it comes time to renew.
“There is no data ownership conflict between Palantir and the Army, at Army Vantage or elsewhere,” Palantir said in a statement following the note. “Palantir does not have and does not retain any ownership rights in customer data, in any of our government or commercial customers.”
More than half of Palantir's revenue comes from government contracts.
Cathie Wood's Ark Invest buys Palantir
Amid this stock decline, Ark Invest acquired more than 1.5 million Palantir shares in several of its ETFs.
Ark's flagship Innovation ETF was responsible for the bulk of the buying, purchasing more than 1.2 million shares, valued at more than $20 million.
Related: Cathie Wood explains why she cut Tesla's stake in Ark
Ark Innovation's Palantir stake, now made up of 7.7 million shares, is valued at $133.4 million and represents 1.61% of the fund.
In the third quarter, Palantir earned $72 million on $558 million in revenue, which the company saying It was the “most significant” benefit it has recorded.
Wedbush Securities analyst Dan Ives initiated coverage of Palantir in July with an Outperform rating and a $25 price target.
“Simply put, we believe Palantir has built an unparalleled ai strength and is poised to be a major player in this ai revolution over the next decade,” Ives. saying At the time.
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