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Palantir stock price is moving higher these days being boosted by the announcement about the company’s new partnership.
Palantir Technologies Inc (NYSE: PLTR) recorded a surge of 10% on its stock after announcing a partnership deal with International Business Machines Corp (NYSE: IBM) sending its shares to $37.53. The stock closed at $36.05 (+5.87%). Now PLTR shares are up 2.97%, reaching $37.12.
Palantir has enjoyed a lot of success since making its debut on the New York Stock Exchange (NYSE), having seen the value of its shares quadrupling and still not slowing down. The data analysis software maker saw its sales team rising from 30 to 2500 people, and showing a lot of resilience in the face of the global pandemic.
Palantir has over the years sought to make the Artificial Intelligence software of IBM easy-to-use for non-technical customers, and while working on this, they believe the partnership deal will be a catalyst to expanding the reach of their sales force. Rob Thomas, the IBM senior Vice President of software, cloud, and data confirmed that they are going to sell Palantir’s software to thousands of customers and 180 countries. He believes that the reselling of the software to ensure that the Artificial Intelligence and data tools already offered by IBM are augmented and made easier for non-technical customers is a natural fit.
IBM expects a lot to change after the partnership agreement with one of the expectations being the expansion of its AI customers from 20% to 80%. This is a realistic expectation as the difficulties that hinder the AI tools’ usage has been offset with Palantir’s software that requires little or no coding.
Thomas said that the partnership will be a gateway to expanding their IBM and Cloud business as half of their revenues will need to be generated through such deals. The Chief Operating Officer of Palantir, Shyam Sankar expressed his excitement about the biggest deal they have ever made, assuring its stakeholders to expect more.
The company at a point prided itself in not having a single person in its sales team. However, it gladly expects to triple its direct sales team to a hundred by the end of the year. Palantir has over a couple of years made it a priority to break its data integration and analysis software into less pricey and smaller modules after targeting companies that mostly generate revenues of at least $500 million.
The commercial business of Palantir has been a bit slow though its government contract has been very encouraging. It was reported that the US Department of Health and Human Services and the Centers for Disease Control and Prevention employed the Palantir software in the Covid-19 outbreak prediction, allocation of vaccines as well as the distribution of protective gears.
Sankar also disclosed that the company does not have the governments and clients’ that experimented with the low-cost software of Palantir and later got rid of them on their top list. However, they hope to get all those businesses back to boost the operations.