Palantir Stock Is Moving Higher: What's Going On?

Palantir Technologies Inc PLTR shares continue to drift higher Wednesday, adding to significant gains over the course of the week. Here's a look at what's going on. 

What To Know: Palantir shares have trended higher this week amid the ongoing conflict in the Middle East. Over the weekend, Israel officially declared war on Hamas in response to a coordinated attack by the Islamist militant group, which has led to over 1,200 Israeli casualties. The American death toll has also reportedly climbed to 22. 

Given Palantir's contracts with various government agencies and defense organizations globally, shares are reacting favorably as investors anticipate increased demand for the company's data software products in light of increased geopolitical tensions.

Related Link: Hezbollah Missiles Intensify Israel Conflict; Yellen Says More Iran Sanctions Possible

On Tuesday, Palantir announced it was awarded a new contract with the U.S. Department of Defense, which helped push shares even higher. The contract is worth up to $250 million through 2026 and aims to support artificial intelligence (AI) and machine learning (ML) capabilities for Combatant Commands, Armed Services, the Intelligence Community and Special Forces. Palantir has partnered with the Army since 2018. 

Palantir has also been trending across various social platforms for most of the week. It was among the top trending tickers on Stocktwits this week and was among the most-mentioned stocks on Reddits' r/wallstreetbets on Wednesday.

PLTR Price Action: Palantir shares were up 0.48% at $17.89 at the time of publication, adding to gains of nearly 14% this week, according to Benzinga Pro.

Photo: Cory Doctorow from Flickr.