What Happened?
Shares of data analytics company Palantir Technologies (NASDAQ: PLTR) jumped 4.5% in the morning session after news of a U.S. military operation in Venezuela boosted investor sentiment.
Palantir, which provided the U.S. government with data analytics and AI software, often reacted to U.S. defense-related operations. Increased military and security activity typically boosted spending on data and AI platforms, areas where the company held strong ties with U.S. government and defense agencies. More than half of Palantir's revenue came from these government contracts. The stock's rise was also supported by a broader surge of investor enthusiasm for technology-themed stocks at the start of the new year, with the upcoming CES exhibition expected to heavily feature AI.
After the initial pop the shares cooled down to $174.75, up 4% from previous close.
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What Is The Market Telling Us
Palantir Technologies’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 3.9% on the news that investor optimism around artificial intelligence fueled broad market gains.
Technology stocks with a focus on artificial intelligence once again led the market higher, boosting the Nasdaq and S&P 500. Companies at the forefront of the AI boom, such as Nvidia and Broadcom, saw significant jumps in their share prices. The rally reflected a renewed belief among investors in the transformative potential of AI technology to drive future growth and productivity. The rally was further supported by a surprise cooling in the November consumer price index (CPI) report, which triggered market pricing for additional rate cuts in the coming year. This created a more favorable environment for growth-oriented software companies as borrowing costs decrease.
Palantir Technologies is up 4.1% since the beginning of the year, but at $174.75 per share, it is still trading 15.7% below its 52-week high of $207.18 from November 2025. Investors who bought $1,000 worth of Palantir Technologies’s shares 5 years ago would now be looking at an investment worth $7,103.
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