Palantir stock rallied Friday, ending a three-week losing streak. And in a surprising twist, rival Databricks actually helped.
Palantir ended the week up 1.6%, after three straight weekly losses, according to IBD MarketSurge. The AI powerhouse joined a broad tech market rally on Friday, jumping 8.3%. But Palantir also got a boost from a number of announcements. The most important one was a partnership with Databricks, the Nvidia-backed startup that is considered a Palantir competitor.
The partnership "combines Palantir's world-class AI operating system and Databricks' leading platform for AI, data warehousing, and data engineering," Databricks said in a statement.
Both Palantir and Databricks, which is backed by AI giant Nvidia, have contracts with the U.S. government. But "the Databricks-powered Advana has been Palantir's biggest rival for Department of Defense data analytics applications," William Blair analyst Louie DiPalma said in a client note.
The partnership will likely benefit both players, he said.
"While there is some overlap, the total addressable market is quite large across a multitude of verticals, and both platforms are taking market share from legacy data platforms and ERP (enterprise resource planning) providers," DiPalma added.
Palantir stock also got a boost last week as the spotlight turned to news from its AI conference. Among the big announcements was the signing of six new customers for its Warp Speed manufacturing operating system.
