ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024

7. Palantir Technologies Inc. (NYSE:PLTR)

Stake Value as of Q3 2024: $409,861,198

Palantir Technologies Inc. (NYSE:PLTR) is a technology company headquartered in Denver, Colorado, that specializes in software platforms for data analytics. These platforms are used by government agencies, financial institutions, and several large corporations. It is one of the top picks from the ARK Invest stock portfolio, with the asset management firm having a stake of over $409 million in the company.

The stock has gained 41% since the announcement of financial results for the third quarter of 2024 on November 4. Revenue for the quarter was posted at $726 million, up 30% year-over-year and 7% compared to Q2 2024, driven by a surge in demand for artificial intelligence, with customer count growing 39% from last year.

In a letter to shareholders on the same day, CEO Alex Karp pointed out the speed of adoption of its platforms and AI capabilities by institutions in the U.S. being a major driver behind Palantir Technologies Inc. (NYSE:PLTR)’s growth. U.S. revenue grew 44% from last year to a total of $499 million for the quarter, of which 64% came from the U.S. government customer base, with the remaining being commercial revenue. U.S. government revenue grew 30% year-over-year during Q3.

Palantir Technologies Inc. (NYSE:PLTR) closed 104 deals in the quarter, contributing over $1 million toward revenues. Adjusted EPS was logged at 10 cents, beating expectations of 9 cents. EPS for the quarter was 43% higher year-over-year. Palantir also ended with strong liquidity, as cash, cash equivalents, and other short-term securities valued at $4.6 billion.

Looking ahead, the company expected total revenue between $2.805 and $2.809 billion for the full year, of 2024, and forecasts income from operations to be in the range of $1.054 and $1.058 billion. Palantir Technologies Inc. (NYSE:PLTR) has also raised its free cash flow guidance for 2024 to over $1 billion. In September, S&P Global announced the inclusion of the company in the S&P 500 stock index, which has further bolstered the company’s encouraging outlook.