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Palantir Technologies (NYSE:PLTR) stock is having an excellent week that only seems to be getting better. The big data analytics firm recently reported impressive fourth-quarter earnings, demonstrating new highs for both profit and sales. But today, PLTR stock is trending for yet another positive reason. The company has signed a memorandum of understanding (MOU) with space exploration leader Voyager Space.
This teaming agreement will allow Palantir to bring its artificial intelligence ( ) and machine learning ( ) technology into the commercial space domain, providing an edge that could help strengthen national security capabilities.
It’s no secret that Palantir’s dynamic reach across multiple tech markets has made it a winner among AI stocks. But now it is venturing into even more lucrative areas, giving investors more reason to bet on PLTR stock. Once again, the company appears to be strategically placing itself to offer investors exposure to another booming market.
Taking PLTR Stock to the Moon
When a stock shoots up 50% in value in just five days, it’s hard not to be impressed. That’s exactly what we’re seeing from PLTR stock. Indeed, while shares haven’t seen much growth for most of the past month, the company is now managing a successful turnaround. This growth is due mostly to the Q4 earnings smash, but partnering with Voyager Space is also an important step — and for multiple reasons.
Firstly, the commercial space markets are skyrocketing in more ways than one. Recent data indicates that the space tourism market is expected to expand at a compound annual growth rate ( ) of almost 50% between 2024 and 2032, for instance. Space stocks that can secure a share of the lucrative and fast-growing space markets will likely have tremendous growth potential. While Voyager is still privately held, by joining forces with it, Palantir could also establish itself as a space stock, attracting even more interest from investors.
That brings us to another reason why this agreement is an important step. Palantir already has a demonstrated history of using its technology to enhance national security measures. In June 2023 alone, it received three separate contracts to provide data-as-a-service capabilities to the U.S. Air Force. Now, Palantir will be able to help enhance “national security capabilities in the commercial space domain” through use of its AI technology at a time when AI and ML are quickly transforming the industry. This partnership could make Voyager a leader in its sector, thereby boosting PLTR stock as it grows.
Ready to Blast Off
2024 is looking like an excellent year for both AI stocks and space stocks. What’s more, Palantir is taking a place at the forefront of both of these sectors. If the company continues expanding its reach across these industries, it may even double investors’ money as InvestorPlace contributor Vandita Jadeja predicts.
All told, it’s fitting that this company is venturing further into the space domain. Right now, PLTR stock looks like it could be headed for the moon.
On the date of publication, Samuel O’Brient 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.