What to Make of the Hertz, Palantir Partnership

Palantir's software will be used to reduce Hertz's operating costs

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Rental car company Hertz Global Holdings Inc (NASDAQ:HTZ) continues to wheel and deal. After inking more electric vehicle (EV) charging stations from BP last month, Hertz yesterday announced a new multi-year partnership with Palantir Technologies (PLTR), a software company that specializes in data analytics and operating systems.

Per the PR newswire, Palantir will help Hertz manage its business more efficiently by providing vehicle availability insights based on data and algorithms. This is meant to decrease the amount of out-of-service vehicles, in turn, reducing operating costs and increasing vehicle availability. Hertz will report earnings next Thursday, Oct. 27 before the open, while Palantir reports Monday, Nov. 7. 

The fact that news of the partnership did nothing to each company's respective stock speaks volume to the technical trouble both are in this year. HTZ fell 1.2% yesterday, the news unable to act as a positive driver. Likewise for PLTR, which shed 3.1%.

Hertz stock is down 32% in 2022, while Palantir -- once a growth sector darling -- has lost 56.8% this year. Both stocks are languishing below key levels; Hertz has consolidated below $18 for the last month, while the shares of Palantir haven't traded above $10 since an  early-August post-earnings bear gap

Analysts are much more confident in Hertz though, with five of seven maintaining "strong buy" ratings and zero "sells' on the books. Palantir stock, on the other hand, has seven of 10 analysts maintaining "hold" or "strong sell" ratings. 


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