11 Best Reddit Stocks to Invest In

6. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) is engaged in building and deploying software platforms for the intelligence community to help in counterterrorism investigations and operations. Investment firm William Blair upped the company’s stock from “Underperform” to “Market Perform” as a result of the recent decline in its stock price. Notably, the company’s stock has seen a decline of ~30% in the past month. William Blair likes Palantir Technologies Inc. (NASDAQ:PLTR)’s strong revenue growth and operating margins. In Q4 2024, the company’s revenue saw an increase of 36% YoY and 14% quarter-over-quarter to $828 million.

Looking ahead, the firm anticipates Palantir Technologies Inc. (NASDAQ:PLTR) to win new contracts with the U.S. government. The company’s Artificial Intelligence Platform (AIP) possesses the potential to be a game-changer when it comes to enterprise AI adoption. The platform’s capability to integrate, secure, and manage data while offering AI-powered insights places it as a comprehensive solution for companies focusing on leveraging AI throughout operations. Palantir Technologies Inc. (NASDAQ:PLTR)’s success in implementing AIP throughout industries, such as healthcare, manufacturing, retail, and supply chain, exhibits its versatility and potential for increased adoption.

Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Two software stocks that the Fund did not own, Palantir Technologies Inc. (NASDAQ:PLTR) and AppLovin Corporation, each gained more than 100% and accounted for 52% of the Benchmark’s gain during the quarter. At year end 2024, Palantir was valued at approximately 200 times its expected 2024 earnings, while AppLovin was valued at 80 times. The market cap of each exceeded $100 billion, and the two stocks represented nearly 8% of the Index. Neither company met our criteria for investment. The total impact on relative performance from Palantir and AppLovin was about 7 times higher than we have seen historically for two securities that are unique to the Benchmark, showing just how unparalleled the event was and something that we believe is unlikely to be repeated.”