Shares of Palantir Technologies (NASDAQ: PLTR) soared more than 8% on Thursday, riding a wave of market optimism following President Trump’s announcement of a new trade agreement with the United Kingdom. While Wall Street broadly cheered the deal — the S&P 500 and Nasdaq also posted solid gains — Palantir’s rally outpaced the pack.
Why Is Palantir Up Today?
The core catalyst was the White House’s trade pact with the UK, the first since Trump reignited a global tariff war in April. Though still short on specifics, the agreement is expected to open procurement markets and remove regulatory hurdles, potentially giving U.S. firms like Palantir a smoother path to securing government contracts in Britain.
One line from the White House’s fact sheet particularly energized PLTR bulls: the deal would “close loopholes and increase U.S. firms’ competitiveness in the UK’s procurement market.” For a company like Palantir — which thrives on large, long-term public sector contracts, especially in national defense, intelligence, and civil services — this opens a key door.
The optimism is rooted in the expectation that Palantir’s AI-powered data analytics platforms could now see fewer roadblocks and more opportunities across the UK public sector.
Fundamentals Still in Focus
Palantir’s recent Q1 earnings beat Wall Street estimates, driven by strong demand for its AI offerings across both government and commercial sectors. Revenue rose faster than expected, reaffirming the company’s positioning as a top AI defense and intelligence tech player.
However, some analysts continue to flag valuation concerns. The stock currently trades at a P/E ratio nearing 500, indicating very high growth expectations baked into its price. Critics argue that continued execution at this level may be hard to sustain, especially if margin pressures or international regulatory challenges mount.
What’s Next?
Investors are now watching closely to see if the final version of the UK trade agreement will include clear policy wins for tech and AI service providers, and whether similar trade deals will be struck with other nations like Japan, India, and South Korea, where Palantir has growing ambitions.
Until then, the stock is likely to remain volatile — priced for near-perfection but riding powerful macro and geopolitical tailwinds.
