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May 30 - Palantir (NASDAQ:PLTR) saw its shares surge about 7% on Friday after reports highlighted the company's expanding role in the administration's data-sharing initiative.
According to the report, Palantir will back President Trump's executive order designed to boost inter-agency data flow. This move could widen the administration's surveillance reach by merging information from multiple federal departments.
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Since Trump took office, Palantir has landed over $113 million in federal contracts, not counting a recent $795 million award from the Department of Defense. Its Foundry platform, which organizes and analyzes large datasets, is used by four federal agencies. Broad adoption of Foundry may help dismantle information silos and streamline access, key goals of the new order.
Privacy experts caution that combining extensive datasets raises the risk of misuse, potentially targeting immigrant groups or political opponents. On its blog, Palantir stresses it merely processes data under client direction and does not control how the information is used.
The White House has remained tight-lipped on Palantir's specific tasks but has underscored the order's aim to cut costs and improve government efficiency. As Palantir's government business expands, investor confidence remains buoyant, even as privacy concerns persist.
This article first appeared on GuruFocus.