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Dear PLTR Stock Fans, This CDC News Could Be a Positive Catalyst for Palantir

Palantir (NYSE:PLTR) shareholders are not having an ideal 2022 so far. For starters, the data analytics company has lost over 40% of its market capitalization since Jan. 1. Making matters worse, PLTR stock shareholders are concerned about a s…

Palantir (NYSE:PLTR) shareholders are not having an ideal 2022 so far. For starters, the data analytics company has lost over 40% of its market capitalization since Jan. 1. Making matters worse, PLTR stock shareholders are concerned about a slowdown in revenue growth. However, Palantir announced this morning that it had received a $5.3 million contract from the Centers for Disease Control and Prevention (CDC). As part of the contract, Palantir will help the CDC manage the distribution of coronavirus drugs in the U.S. and deal with supply chain issues.

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PLTR Stock: Palantir Awarded a $5.3 Million Contract From the CDC

The contract between the two parties will last for six months. In addition, the contract is an extension of a previous contract that utilizes Palantir’s Tiberius platform for vaccine distribution. The new contract will allow the CDC to integrate additional datasets to improve operations and decision-making for the treatment of coronavirus. Furthermore, Tiberius is powered by Palantir Foundry. Tiberius became vital to the CDC’s vaccine program after being selected in 2020 to assist with Operation Warp Speed. The CDC renewed its contract last July and is doing so again.

Palantir’s chief medical officer for the U.S. government, Dr. Bill Kassler, was pleased with the contract extension, adding that, “Palantir’s technology provides public health officials, from the federal to the local levels, with the tools they need to make informed, up-to-date decisions about sending medications and other resources where they are needed most.”

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The Bottom Line on Palantir

Commercial revenue is a huge driver for Palantir’s growth potential. While the CDC contract reflects government revenue, Palantir reported Q4 commercial revenue growth of 47% year-over-year, while U.S. commercial revenue grew 102% YOY. Meanwhile, total revenue grew 34% YOY to $433 million, while government revenue grew 26% YOY. Investors should be pleased with Palantir’s commercial growth as government revenue growth slows its pace. However, profitability remains a concern for shareholders. During Q4, Palantir incurred a net loss of $156.19 million, which was more than the expected figure of $148.34 million.

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For Q1, the company guided for $443 million in revenue with a 23% adjusted operating margin. For long-term guidance, Palantir reiterated its expectation of at least 30% annual revenue growth until 2025.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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