Palantir Technologies stock rose on Monday after the company announced a partnership with Knox Systems, a federal cloud provider. The deal aims to speed up software deployments in environments with strict federal certification standards.
Palantir Technologies gained as much as 5.9% on Monday morning. As of 12:19 p.m. ET, the stock was still up 5.5%.
The catalyst was a press release that announced a new partnership with Knox Systems, described as one of the world's largest Federal and Department of Defense managed cloud providers.
Knox deal targets federal certification
The partnership combines Palantir's data mining and AI platform with Knox's managed federal cloud computing platform. Together, the two companies will help customers accelerate their acceptance into the Federal Risk and Authorization Management Program (FedRAMP).
According to the release, the goal is "getting the best technology into the hands of the warfighter and the U.S. Government".
However, the article notes that FedRAMP and Impact Level 5 are two of the strictest federal certification standards. The partnership helps accelerate software deployments in these environments, getting Palantir's solutions to more warfighters more quickly.
Valuation still draws attention
Recent concerns about the future of AI adoption have weighed on Palantir. The stock still appears pricey at 83 times next year's expected earnings.
Yet Palantir's triple-digit profit growth puts its price/earnings-to-growth ratio at 0.5, according to The Motley Fool. A number below 1 is the standard for an undervalued stock. For context, see the PEG ratio definition.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
