Shares of American Well (NYSE: AMWL) charged out of the gate on Friday, climbing as much as 24.5%. As of 12:04 p.m. ET, the stock was still up 10.6%.

The catalyst that sent the telehealth software company higher was news of a major government contract win, which is a huge vote of confidence for its telehealth platform.

In a press release that dropped after the market close on Thursday, American Well (Amwell) revealed that it -- along with Leidos (NYSE: LDOS) -- was chosen by the U.S. Defense Health Agency (USDHA) and "awarded a next-generation contract to provide a hybrid care technology platform designed to power the 'Digital First' transformation of the Military Health System (MHS)."

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Source Fool.com