Business And Finance

Stock Market Palantir leaps 15% after revealing partnership with IBM on artificial-intelligence applications

Arnd Wiegmann/Reuters Palantir soared as much as 15% on Monday after the firm revealed a new partnership with IBM.The companies will collaborate on an artificial intelligence product meant to help businesses leverage large data sets.Palantir has surged through the new year amid strong retail-investor demand and encouraging deal news.Watch Palantir trade live here.Palantir ripped as…

Published on February 8, 2021

Stock Market

Palantir soared as much as 15% on Monday after the firm revealed a new partnership with IBM.
The companies will collaborate on an artificial intelligence product meant to help businesses leverage large data sets.
Palantir has surged through the new year amid strong retail-investor demand and encouraging deal news.
Watch Palantir trade live here.

Palantir ripped as much as 15% higher on Monday after the company unveiled a partnership with IBM on a business-focused artificial intelligence product.

The analytics giant plans to pair its app-building platform with IBM’s cloud-data service to create an AI tool for businesses, according to a press release. The collaboration is expected to help businesses access and analyze swaths of cloud data without the need for deep technical know-how. The firms aim to roll out the product in March.

Nearly three-quarters of businesses surveyed by IBM said they are experimenting with or implementing AI in their operations, the company said. Yet just 37% of respondents named “limited AI expertise” as a hurdle toward using such applications. Increased data complexities were deemed an obstacle by 31% of businesses.

The product, named Palantir for IBM Cloud Pak for Data, is planned for businesses in retail, financial services, manufacturing, and telecommunications, among other sectors.

IBM gained 1.8% at intraday highs.

Palantir’s climb extends gains made through the end of last week. Shares closed 6.2% higher on Friday after the company announced it would expand its partnership with BP. The “multi-year, multi-million dollar deal” aims to help BP reach net-zero emissions by 2050, according to a press release.

The data giant’s stock price has also benefited from strong retail-investor demand in 2021. Members of the r/wallstreetbets forum who drove GameStop, AMC, and other highly shorted stocks higher have also touted Palantir as a favorite pick. Shares sit roughly 49% higher year-to-date.

Palantir traded at $37.60 as of 10:44 a.m. ET Monday. The company has two “buy” ratings, three “hold” ratings, and three “sell” ratings from analysts.