The positive stock movement for Palantir is directly attributed to the CEO's announcement of increased product demand from Israel, which suggests a potential increase in revenue and business for the company. The company's active engagement and support for Israel, including the board meeting in Tel Aviv, may also be viewed positively by investors who see it as a sign of strong international relationships and potential for future contracts. However, the mention of internal resistance indicates there could be some concerns or controversies that might temper investor sentiment.