After losing retail interest, Palantir shares pop on Middle East turmoil

Palantir jumped in early trading Monday, with shares on track for their best day in weeks after the outbreak of war in the Middle East reinvigorated investor interest in a company that is an intelligence and defense contractor to the US and Israel.

Despite impressive recent business results driven by its corporate AI software division, Palantir has lost some of the previously rapt attention of individual investors, a group of shareholders who were a cornerstone of the stock’s more than 400% rise over the last two years.

In a note published last week, JPMorgan analyst Arun Jain, who keeps a close eye on trends among individual traders, noted that retail “paused PLTR purchases last September.”

The stock topped out not long after that, hitting a record of $207.52 in early November. Even after Monday’s bounce, the shares are down about 30%, having tumbled through key technical levels that confirm the downshift in momentum.

But with the attention of the markets now clearly on the war in Iran and the wider region, Palantir’s attributes as a defense and intelligence contractor for the US government — it took in $1.9 billion from US government customers last year, 42% of total revenue — as well as Israel seem to be getting the company a second look.