What's Going On With Palantir Stock Thursday?

Palantir Technologies Inc PLTR shares are getting pulled in different directions Thursday morning. The stock initially moved lower on a downgrade from Jefferies before bouncing back on a partnership with Amazon.com Inc AMZN Web Services (AWS) and Anthropic. Here’s what you need to know.

What To Know: Jefferies analyst Brent Thill downgraded Palantir from a Hold rating to an Underperform rating Thursday morning and maintained a price target of $28, citing valuation concerns.

Palantir shares are up more than 220% since the start of the year and have gained about 30% in just the past week. Palantir on Monday reported strong quarterly results driven by "unrelenting" AI demand, which helped push shares to new highs.

The company reported 30% year-over-year revenue growth and a 39% jump in customer count after closing 104 deals worth over $1 million during the quarter.

Despite the downgrade Thursday morning, Palantir shares are bouncing back from early weakness after the company announced a new deal with Anthropic and AWS.

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Palantir and Amazon-backed AI startup Anthropic will work together to provide U.S. intelligence and defense agencies access to the Claude 3 and 3.5 family of models on AWS. The partnership allows for an integrated suite of technology to operationalize the use of Claude within Palantir’s AI Platform (AIP) to support government operations.

“Our partnership with Anthropic and AWS provides U.S. defense and intelligence communities the tool chain they need to harness and deploy AI models securely, bringing the next generation of decision advantage to their most critical missions,” said Shyam Sankar, chief technology officer at Palantir.

“Palantir is proud to be the first industry partner to bring Claude models to classified environments. We’ve already seen firsthand the impact of these models with AIP in the commercial sector … We are now providing this same asymmetric AI advantage to the U.S. government and its allies.”

PLTR Price Action: Palantir shares initially fell to around $54.30 on the downgrade before bouncing back on the Anthropic and AWS deal. The stock was still down 0.46% at $55.27 at the time of publication, according to Benzinga Pro.

Photo: Cory Doctorow from Flickr.