So, Palantir Technologies Inc. (PLTR) shares are having a better day. They're up nicely on Wednesday, and the reason is a classic Palantir move: a new government contract. More specifically, a partnership with GE Aerospace (GE) to support a U.S. military deal.
The contract was awarded by the Defense Logistics Agency to GE. The job is to increase readiness for the J85 engine, which powers the Air Force's primary training aircraft, the T-38. And GE is bringing Palantir along as a key partner to make it happen.
What's the Deal About?
Think of it as a high-stakes logistics puzzle. Under the agreement, GE and Palantir will apply AI-driven digital logistics to improve how the Air Force manages its fleet of T-38 trainers and the supply chain for their J85 engines.
The idea is to use Palantir's platform to pull together data from all over the place—the U.S. Air Force, the Defense Logistics Agency, and GE Aerospace itself—and then use artificial intelligence and analytics to make sense of it. The goal is to predict when parts will be needed and spot supply chain bottlenecks before they become a problem. It's about keeping more planes in the air, more of the time.
The initial contract runs for seven months, with an option to extend for another four years and five months right after. For GE, this is its first "TrueChoice Defense" digitally enabled contract specifically for the J85 engine program.
A Welcome Bounce
This positive news is a bit of relief for Palantir investors. The stock had been having a rough go of it recently, sliding on Tuesday amid a mix of competitive pressures, governance questions (including a notable $17.2 million private-jet reimbursement for CEO Alex Karp), and ongoing litigation with an AI startup called Percepta.
So, a new government partnership announcement is a pretty good way to change the conversation.
Where the Stock Stands
Let's look at the numbers. Technically, even with today's pop, Palantir is still trading about 3.5% below its 20-day simple moving average and a more significant 21.1% below its 100-day average. That keeps the intermediate-term trend pointed down, even as the stock tries to find a floor and bounce.
The longer view is more dramatic. Over the past 12 months, the shares are still up an impressive 54.33%. But the current price is sitting much closer to its 52-week low than its high. That shows just how far it has fallen from its peak and how much ground it's been trying to reclaim.
How the Market Sees It
Looking at broader market metrics paints a familiar picture for Palantir. Its momentum score is neutral, suggesting the trend isn't decisively strong in either direction right now. Its value score is deep in bearish territory—the stock is, by most traditional benchmarks, very expensive. That's not new; Palantir has always traded at a premium.
The standout score is in growth, which is bullish. The market is still very much rewarding the company for its strong growth expectations compared to most other stocks. In short, it's a pricey stock because people believe in its growth story. Deals like this new military contract are exactly the kind of thing that story is built on.
At the time of reporting, Palantir shares were up 4.47% at $134.59.
