Despite the US Army starting another step of a contract, Palantir Technologies stock declined more than 2% to $17.97 on Friday, extending its previous pattern from the beginning of November.
Palantir's stock has sparked both positive and pessimistic sentiment. Some say that the company's goods and platforms offer a competitive advantage, while others believe it is overvalued and are concerned about the company's secrecy as a result of its intelligence agency contracts.
The company's shares have recently been knocked down by pessimistic calls. They began to tumble in early November, following the company's third-quarter earnings. Despite the data analytics firm's statement that the US Army's Program Executive Office for Enterprise Information Systems has triggered the second option year of its partnership with Palantir on the Army Vantage program for $116.3 million, the stock fell on Friday.
Palantir was awarded a $458 million production contract by the US Army in December 2019 to power Army Vantage, a data analytics platform. There was an initial base year and three option years in the deal. Palantir was paid $110 million for the base year and $113.8 million for the first option year in December 2020.
"The Army Vantage initiative is the bedrock of the Army's ability to make data-driven choices throughout the force," said Doug Philippone, Palantir Technologies' Global Defense Lead.
"This collaboration demonstrates what industry and government can achieve in a hurry to overcome difficult problems."