Why Palantir Stock Ticked Higher on Tuesday

One perceived weakness of Palantir‘s (PLTR +1.54%) business is that it was too concentrated in its native U.S. On the company’s Tuesday announcement of a major new deal abroad, those worries abated somewhat. Grateful investors pushed the company’s stock 1.4% higher, in a trading session that saw the S&P 500 index slump by 0.5%.

South of the border

Well before market open that day, Palantir reported that it had agreed to an “enterprise expansion agreement” with Mexico’s largest insurance company, GNP Seguros. This is a historic win for the American data analytics company, as its new client is its first publicly announced commercial customer in Latin America.

Image source: Getty Images.

Palantir typically operates in phases; its initial work with a client is often an unannounced, under-the-radar pilot phase.

Palantir and GNP Seguros had actually been collaborating prior to Tuesday’s announcement, with the insurer putting the company’s Foundry and Artificial Intelligence (AI) Platform through its paces in a set of targeted deployments. These aided the company in various aspects of its health, auto, life, and damage insurance lines.

Palantir did not provide the financial details of the arrangement.

Today’s Change

(1.54%) $2.04

Current Price

$134.58

Key Data Points

Market Cap

$318BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$131.46 – $138.88

52wk Range

$106.37 – $207.52

Volume

2.1M

Avg Vol

46.1M

Gross Margin

84.07%

New revenue streams always welcome

In its press release divulging its work with GNP Seguros, Palantir wrote that its “value proposition lies in the fact that this technological acceleration is carried out while always preserving human judgment, model explainability, data traceability, and strict governance.’

Given that the company’s offerings are starting to resonate more with important clients abroad, it’s clearly plowing another row for growth. Investors were right, in my opinion, to view the GNP Seguros news bullishly.