Palantir Technologies Inc. (PLTR) shares took off on Monday, fueled by the company’s inclusion in the prestigious S&P 500 index. This move, part of the index’s quarterly rebalancing, replaces American Airlines Group, Inc. (AAL) and is expected to give Palantir a significant boost.
The inclusion in the S&P 500 will likely attract greater attention from investors, as index funds that track the S&P 500 will need to acquire Palantir shares to maintain their portfolio alignment.
Interestingly, this surge occurred despite a downgrade from Raymond James, who lowered their rating on the stock from Outperform to Market Perform. However, the overall positive sentiment surrounding Palantir, driven by recent contract wins and its growing role in the defense sector, appears to outweigh this bearish sentiment.
Palantir’s stock has seen a remarkable 20% increase over the past month, largely attributed to several new contracts and its inclusion in the S&P 500. One notable contract, worth $99.8 million, was awarded by the DEVCOM Army Research Laboratory (ARL) and expands the reach of Palantir’s Maven Smart System across various branches of the U.S. military, including the Army, Air Force, Space Force, Navy, and U.S. Marine Corps.
This contract will leverage Palantir’s platform to enhance AI-enabled battlespace awareness and facilitate global integration, force management, logistics, and joint targeting workflows. Ultimately, this will improve military interoperability and readiness.
“This contract vehicle will allow every military department to tap into the innovation that the Office of Secretary of Defense and NGA have created through Maven to accelerate their own CJADC2 programs,” said Akash Jain, president of Palantir USG.
Palantir’s stock performance reflects this positive momentum, currently trading above its 50-day moving average of $30.50. The stock closed Monday’s session at $37.95, just shy of the 52-week high of $38.19, also reached on Monday.
