We recently published a list of 12 Most Buzzing Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other most buzzing stocks to buy according to hedge funds.
Economist Expects Prices to Rise in 2025
Data for the gross domestic product (GDP) in the fourth quarter of 2024 came out at 2.3%, slightly under economist expectations of 2.6%. On January 31, Lauren Saidel-Baker, an economist at ITR Economics, appeared in an interview on Yahoo Finance to share her outlook on the economy ahead of 2025.
Baker suggested that the economy is growing slower, which is rather a normalization of the economy and, therefore a very normal circumstance. She added that the economy is still feeling the ripple effects of the pandemic and we are now finally seeing the economy getting back to its “feat.” Baker also shared her optimistic approach towards the economy suggesting that the fundamentals point towards stable economic growth. She added that most of the growth has been driven by the consumer, meaning that the average consumer in the United States is strong and has showcased resilience.
On the flip side, the economist did share concern over government spending, exceeding its means, which has been a “long-going problem” in her opinion. Baker also shed light that government spending beyond its means may spiral in the very near term, especially with relatively higher interest rates pushing a much larger debt burden.
She highlighted that it is very important for individuals to read the economy through the noise. She added that the market has heard a lot of noise about the impending tariffs and the supposed growers and shrinkers of the economy, which she believes risk higher inflation rather than economic growth. She emphasized that there is no optimal number at which the economy is supposed to grow, and the economy is likely expected to operate in waves.
Baker believes that the economy may grow between 2-3% by the end of the year, and expects to see a slight acceleration by 2026. She also added that while the consumer is feeling higher prices, the general trend is in fact “disinflation,” which means a positive rate of inflation but slightly lower. She explained that while the consumer is bearing the brunt of higher prices, the prices are not rising fast enough to be a concern. She also added that while she does expect prices to rise further, the balancing act of “disinflation” may be good news for wages.
The consumer continues to show resilience towards the volatile and uncertain economic conditions, which is reflected in the performance of the stock market.
Our Methodology
To compile our list, we sifted through Yahoo Finance’s list of stocks that are experiencing high trading volumes. We looked at the analyst and investor sentiment for each stock and narrowed down our selection to 12 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024.
Note: All price/volume data is as of January 31, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NASDAQ:PLTR)
Volume: 40.6 Million
Average Volume (3-Month): 83.8 Million
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that specializes in software platforms for big data analytics. Earlier in December 2024, the company expanded its Army Vantage partnership with a $618.9 million contract, improving the way missions are performed using data and AI. Similarly, in an interesting update, on the same day, the company announced a partnership with Pray.com on AI applications for faith-backed non-profits. A week before this, Palantir Technologies Inc. (NASDAQ:PLTR) announced a strategic partnership with Anduril to facilitate the flow of national security using AI capabilities.
On January 23, Daniel Ives, an analyst at Wedbush, maintained a buy rating on Palantir Technologies Inc. (NASDAQ:PLTR), increasing its price target to $90. The analyst gave a buy rating based on the company’s crucial role in its AI capabilities and its AI growth strategy leading up to 2025. The analyst expects PLTR to throne as a leading player in the AI software industry due to its strategic position and advancements over the months. Ives emphasized PLTR’s communication and partnership with the US government and mission-critical use cases. Over the past six months, the stock has grown by a whopping 214%.
Overall, PLTR ranks 7th on our list of most buzzing stocks to buy according to hedge funds.. While we acknowledge the potential of PLTR to grow, 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
Disclosure: None. This article is originally published at Insider Monkey.
