Palantir Technologies(NYSE:PLTR) stock is on the move Friday following news of a deal with the Federal Aviation Administration (FAA).
The goal of this deal is toassist the FAA in modernizing its ” objectives for aviation safety.”This will have Palantir Technologies providing the agency with a data analyzing tool to help with that effort.
According to a news release, this will have Palantir Technologies monitoring various safety aspects for the FAA. That includes reintegrating the 737 MAX fleet back into service after it was suspended due to fatal crashes.
Palantir Technologies’ deal with the FAA is set to last for one year. However, there’s also the option to extend it by up to two years. The agreement has a maximum value of $18.4 million.
Akash Jain, president of Palantir USG, said the following about the agreement with the FAA that should have PLTR stock gaining today.
“We are proud to be partnering with the Federal Aviation Administration to support their critical safety mission.”
The fact that PLTR stock is actually moving lower today despite this news is strange. The company’s shares did start off rising in early morning trading, but quickly fell back down to yesterday’s close before dipping even lower.
It’s also worth noting that trading volume isn’t taking off on news of the FAA deal, either. As of this writing, more than 20 million shares of PLTR stock had changed hands. That’s still well below the company’s daily average trading volume of 57.8 million shares.
PLTR stock was down 1.1% as of Friday morning.