A Palantir spokesperson clarified that no vulnerabilities were found in the company’s platform and the findings were mitigated immediately.
Palantir Technologies, Inc.’s (PLTR) stock rebounded by nearly 3% in the early premarket session on Monday following its almost 7.5% pullback on Friday. Last week’s weakness was triggered by a Reuters report, citing an internal Army memo, which stated that a prototype battlefield communications network (NGC2) being developed by Palantir and Anduril Industries poses security risks.
Notwithstanding Friday’s sell-off, Palantir stock has gained nearly 130% for the year-to-date period. The 14-day relative strength index (RSI) indicates that the stock has retreated to a ‘neutral’ zone (49.74) from the overbought territory it was trading in before the sell-off.
The NGC2 platform is designed to modernize military communications by enhancing the connection between troops and their commanders. Palantir’s partner and defense technology company Anduril announced in mid-July that it was awarded a $99.6 million contract to lead the delivery of the NGC2 prototype, integrating partner capabilities from other technology-first companies like Palantir, Striveworks, Govini, Instant Connect Enterprise (ICE), Research Innovations, Inc. (RII), and Microsoft.
Responding to the memo, a Palantir spokesperson reportedly told the Wall Street Journal that “The security review process during the experimental phase of NGC2 functioned as designed.” The spokesperson also clarified that no vulnerabilities were found in the company’s platform, and the findings were mitigated immediately.
The Journal also reported that Joseph Welch, a portfolio executive for the Army, said the concerns reported in the media did not reflect inherent problems with vendors’ commercial products, and instead concerned “configurations and compliance steps for the Army’s intended use of these products.”
Anduril also reportedly confirmed the same to the Journal. “NGC2 is progressing through the normal process of iterative development,” a company spokesperson said. “We find risks early, address them quickly, and harden the system before fielding.”
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