5 Best SaaS Stocks to Buy and Hold for Long Term Profits

2. Palantir Technologies Inc. (NYSE: PLTR)

Number of Hedge Fund Holders: 32

Founded by legendary investor and billionaire Peter Thiel, Palantir Technologies Inc. (NYSE: PLTR) continues to be one of the best SaaS stocks to buy and hold for long-term gains. In addition to its Foundry and Gotham platforms, Palantir is getting famous for its SaaS product called Apollo. The company continues to bag huge contracts from the US government. Earlier in June, the company received a $7.4 million contract renewal with CDC for disease monitoring and outbreak response. Last month, Palantir Technologies Inc. (NYSE: PLTR) jumped after the company signed a $111 million contract with U.S. Special Ops.

Famous investor and billionaire Stanley Druckenmiller bought 6 million shares of the company in the first quarter of 2021, worth $139.4 million.

Cathie Wood’s ARK Investment Management currently holds 18.6 million shares of Palantir that amounts $433.95 million. PLTR occupies 0.86% of ARK’s total portfolio.

Guardian Fund, in their Q4 2020 investor letter, said that they acquired a position in Palantir Technologies Inc. (NYSE: PLTR) because they believe that the company’s revenues will grow faster than its expenses.  Here is what Guardian Fund has to say about Palantir Technologies Inc. in its letter:

“In October, we bought a stake in Palantir Technologies Inc. (NYSE: PLTR). Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”