NATO-Google Cloud Sovereign Cloud Deal Impact Analysis on GOOGL and PLTR

The Nov 24, 2025 NATO-Google Cloud deal for AI-enabled sovereign cloud [1] drove significant market movements: GOOGL rose 6.31% with volume double the average (81.46M vs avg36.19M) [0], pushing its market cap to $3.84T [0]. PLTR gained 4.78% [0], contrary to Reddit concerns [4], as the market does not view the deal as a direct threat to its core defense contracts (e.g., $10B U.S. Army deal [2]). The Tech sector outperformed with a +2.085% gain [0], supported by positive sentiment around AI and defense cloud infrastructure.

• GOOGL’s deal strengthens its defense cloud presence, complementing its earlier UK MoD contract [3].
• PLTR’s resilience (4.78% gain) highlights market recognition of its specialized defense focus (Army/Air Force contracts [2]) despite competition fears.
• High volume for GOOGL indicates strong institutional and retail confidence in long-term deal value [0].

• GOOGL
  : Valuation risk (current price above analyst consensus target of $300 [0]) and competition from Oracle (existing NATO deal [3]).
• PLTR
  : High P/E ratio (377x [0]) and bearish sentiment from Michael Burry’s $9.2M put options [2].
• General
  : Data security concerns for NATO’s classified workloads [1] and ongoing cloud sector competition in defense.

• GOOGL
  : Expansion into defense cloud market, following successful UK MoD partnership [3].
• PLTR
  : Strong Q3 revenue growth (63% YoY [2]) and focus on high-value specialized defense contracts.

The NATO-Google Cloud deal is a positive step for GOOGL’s defense cloud strategy, though valuation risks persist. PLTR’s performance shows resilience in its core markets. Decision-makers should monitor exact deal terms, upcoming contract announcements for both companies, and competition dynamics in the defense cloud sector. Information gaps include the exact value and duration of the NATO-Google deal [1] and Palantir’s existing NATO contracts (if any).