Why Is Palantir Stock Trading Higher During Tuesday's After-Hours Session

Shares of Palantir Technologies PLTR were trading sharply higher following an announcement that the company won an $823 million contract from the U.S. Army’s Program Manager for Intelligence Systems and Analytics for the Capability Drop 2 program.

The company was selected to progress to the next phase of the Army’s competitive indefinite delivery, indefinite quantity contract following a successful collaboration on a “Test, Fix, Test” process. Palantir will deploy its Gotham Platform to support Army Intelligence users worldwide in order to field modern data integration, correlation, fusion, and analytic capabilities to prepare the Army against emerging near peer threats. The Army plans on using the Gotham Platform’s capabilities to modernize their data foundation by migrating legacy programs to CD-2.

Palantir Technologies Global Defense Lead Doug Philippone highlighted the company’s progression for the CD-2 program and looks “forward to the continued partnership with PEO IEW&S and the Army’s Intelligence Community in providing new and exciting technology that help them in their modernization efforts.” The CD-2 is just one of several efforts Palantir is working on; other projects include Capability Drop 1 (CD-1) and the Tactical Intelligence Targeting Access Node (TITAN) programs.

Palantir Technologies builds software platforms for the intelligence community within the United States in an effort to deter and retaliate in counterterrorism investigations and operations. The company has a few software platforms currently in use within the defense and intelligence sectors including the Gotham Platform and Palantir Foundry.

At the time of publication, shares of Palantir Technologies were trading 9.00% higher during after hours at $25.3, extending gains on the day after a 0.19% rally during market hours.

The stock has a 52-week low of $8.90 and a 52-week high of $45.00