Palantir Technologies renews its contracts with U.S. government and Armed Forces.
RACHELLE AKUFFO: Now Palantir Technologies, my pick, ticker PLTR, was enjoying some strong gains today before the broader market sell-off. Still though in positive territory by about 1 and 1/2%. Now the Defense Department awarded Palantir a $229 million deal to develop and deliver artificial intelligence and machine learning capabilities for the armed services, joint staff, and special forces. You'll recall this is actually the contract that Google abandoned after backlash from its employees, according to Bloomberg. Now this move Palantir co-founder Peter Thiel criticized Google for.
Now Palantir has been building on this government relationship that actually started with the Army Research Lab in 2018, having secured a 900-- sorry, having secured a $95.9 million contract with Homeland Security investigations just this month as well. Of course, the company acknowledged that its government awarded contracts can be unpredictable. And, of course, the stock has been under pressure ever since issuing downbeat forward guidance with its recent earnings report. So some good news on a down day overall though for the broader tech sector, Seana.
SEANA SMITH: Yeah, Rachelle, it's interesting when it comes to Palantir because over the past year, the stock's off just around 70%. Yet, they have met their goal. They promised when they went public just about two years ago that they would at least put up a revenue, grow revenue at a rate of more than 30% annually. They've done that.
Yes, the latest earnings report, they did miss a little bit when it comes to guidance. But we saw that reflected in the stock the next day. The stock tanked just over 15%, its worst day on record. So the fact that Palantir does have this bit of good news, I think will certainly help investor sentiment when it comes to Palantir. But I think the pressure is going to be on next quarter to see whether or not they do meet what the Street is looking for.