1. Palantir Technologies Inc (NASDAQ:PLTR)
1-Year Price Performance: 409.23%
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a data analytics and software company that creates and installs software platforms that help intelligence agencies and other companies comprehend large data sets.
Palantir Technologies (NASDAQ:PLTR) announced results that came above forecasts in the fourth quarter. The data analytics company reported adjusted earnings of $0.14 per share on $827.5 million in revenue for the fourth quarter, above analysts’ expectations of $0.11 per share and $778.2 million. Total revenue for the quarter climbed by 36% year-over-year, with CEO Alex Karp citing growing demand for AI.
Following Palantir’s Q4 earnings beat, Morgan Stanley analyst Sanjit Singh raised the stock to Equal Weight from Underweight, with a price target of $95, up from $60. Despite an “ultra premium” price, Morgan Stanley expects no downside triggers for the stock over the next four quarters. Given Palantir’s strong forecast, the firm believes it was incorrect to predict growth to dip below 30% in 2025 due to tougher comparisons.
Alger Mid Cap Focus Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) builds advanced platforms for data integration, management, and security, enabling interactive, AI-assisted analysis for its users. Its core offerings include Palantir Gotham, designed for government clients, and Palantir Foundry, tailored for commercial customers. Originally focused on U.S. intelligence agencies, Palantir has expanded into defense contracts with western governments and entered the commercial market in 2016. During the quarter, shares contributed to performance after the company reported better-than-expected fiscal third quarter operating results, along with management raising its full year 2024 revenue guidance. Management noted that the recent launch of its AI platform (AIP), which leverages generative AI to optimize business operations, has driven significant growth and investor interest. Additionally, we believe Palantir could be a key partner for the U.S. government’s new Department of Government Efficiency (DOGE), as its AI-driven platforms are ideally suited to help identify inefficiencies, allocate resources effectively, and achieve cost reductions.”
While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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