Palantir Shares Surge On Report Of $44M FDA Contract

One of the hottest new offerings of 2020 has been Palantir Technologies PLTR, with shares up nearly 200% since its IPO.

What Happened: Palantir's stock surged Monday following a Bloomberg report of the company landing a three-year, $44-million contract with the U.S. Food and Drug Administration.

The deal would see Palantir help power drug reviews and inspections, according to the report.

Related Link: Palantir Gets Boost From Cathie Wood, George Soros

Why It’s Important: Palantir reported third-quarter revenue of $298.4 million, which was up 52% year-over-year.

Government contracts totaled $163 million in the third quarter, representing more than 50% of the total.

Palantir announced 15 new deals in the third quarter of $5 million or more. Large announced deals included a U.S. Army deal for $91 million, a $36-million deal with the National Institutes of Health and a $300-million renewal with a major aerospace company.

The company is guiding for fourth-quarter revenue to hit $299 million to $301 million.

PLTR Price Action: Shares of Palantir ended Monday's session 21.34% higher at $28.94, approaching their 52-week high of $29.05.