Group 1: Palantir (NASDAQ: PLTR) - Palantir has experienced a significant stock correction after reaching highs above $120, but its fundamentals remain strong with a 36% year-over-year revenue increase, totaling $827.52 million for the quarter ending December 2024 [2][3] - The government segment, which constitutes nearly 60% of Palantir's revenue, continues to thrive with contracts from U.S. defense agencies, while its commercial business is also crucial as companies seek AI solutions [4] - Despite concerns about valuation and potential defense spending cuts, Palantir's revenue pipeline suggests accelerating growth into 2025, which could justify its premium for long-term investors [5][6] Group 2: Rivian (NASDAQ: RIVN) - Rivian has faced challenges in 2025 due to stiff competition from established EV manufacturers like Tesla and potential regulatory changes under the new administration that may affect the EV sector [9] - The company has strong partnerships, notably with Amazon, which has ordered 100,000 electric delivery vans, and a $5.8 billion joint venture with Volkswagen to develop EV architectures and software [10] - Rivian's delivery numbers are improving, with 14,183 vehicles delivered in Q4 2024, surpassing estimates, and a total of 51,579 vehicles for the full year, indicating growth potential despite stock price fluctuations [11]

Core Insights - The stock market has experienced a significant bull run, largely driven by AI stocks, with Palantir Technologies seeing a 790% increase over the last five years [1] - Costco Wholesale has also performed well, with a 187% increase in the same period, despite being a non-AI related stock [2] Palantir Technologies - Palantir trades at a forward P/E ratio of 152, providing advanced data analysis capabilities to clients across various sectors [3][4] - Following a strong earnings report, Palantir's stock surged, although analysts have mixed ratings, with four buy, nine hold, and five sell recommendations [4][5] - Concerns have been raised regarding potential defense spending cuts and the resignation of the chief accounting officer, alongside a new agreement allowing the CEO to sell shares [5] - Loop Capital initiated coverage with a buy rating and a $141 price target, highlighting its potential as a game-changing software stock [6] Costco Wholesale - Costco trades at a forward P/E ratio of 56, benefiting from a strong business model that includes bulk sales and membership fees [7] - The company has seen a 13% year-over-year growth in e-commerce sales and plans to open 29 new stores in fiscal 2025 [8] - Despite concerns about the U.S. consumer's financial condition, Costco's membership model provides resilience during economic downturns [9] Comparative Valuation - Both Palantir and Costco are viewed as overvalued, with Palantir being riskier due to uncertainties in the AI market, while Costco has a more stable business model [10][11] - Costco's growth story is supported by its e-commerce expansion and consistent performance, but maintaining its high valuation remains uncertain [12]

Core Viewpoint - Palantir Technologies experienced a significant stock surge of over 60% in early 2025, reaching a 52-week high on February 18, but has since seen a rapid decline of 28% in value due to concerns over potential Pentagon budget cuts and CEO stock sales [1][2]. Group 1: Stock Performance and Market Reaction - Palantir's stock has dropped 28% since its peak on February 18, primarily due to fears surrounding a potential reduction in the Pentagon's budget and CEO Alex Karp's plan to sell over $1.2 billion in stock [2]. - The stock's decline is not surprising given its expensive valuation and the upcoming quarterly report, which may lead to continued negative sentiment in the short term [3]. Group 2: Pentagon Budget Implications - The Pentagon's budget reduction aims to cut fiscal fraud and waste while refocusing on critical areas, which may not negatively impact Palantir, as sectors like missile defense and cybersecurity are expected to remain funded [5]. - In Q4 2024, 55% of Palantir's revenue was government-related, making the company's stock sensitive to changes in defense spending [6]. Group 3: Growth Opportunities - Despite potential budget cuts, Palantir's focus on efficiency and its AI Platform (AIP) could benefit from the Pentagon's strategy, as AIP enhances decision-making and operational efficiency for both commercial and government clients [7]. - Palantir's government revenue grew by 40% in the last quarter, outpacing the 31% increase in commercial revenue, indicating strong demand for its services [8]. Group 4: Commercial Business Expansion - Palantir's commercial business is thriving, with a 52% increase in customer count to 571 last year, suggesting a robust growth trajectory [12]. - The remaining deal value, which represents the total value of contracts yet to be fulfilled, increased by 40% to $5.4 billion, indicating that Palantir is securing more contracts than it is currently fulfilling [13]. Group 5: Investment Considerations - The recent stock pullback has made Palantir's shares slightly less expensive, but the company still commands a significant premium [14]. - Accumulating Palantir stock may be advisable if the price continues to decline, as the company is positioned in the rapidly growing AI software market, which could support its high valuation in the future [15].

Core Insights - Palantir Technologies reached a peak share price of nearly $125 on February 18, resulting in a forward price-to-sales (P/S) ratio of 61, marking it as the best-performing stock in the S&P 500 during that period with a 625% increase since January 2024 [1][2][3] Valuation Concerns - Following disappointing economic data and tariff concerns, Palantir's stock has dropped 32% from its record high, indicating potential further declines based on historical performance of similar stocks [2][6] - Analysts have raised alarms about Palantir's valuation, with some stating it trades at an "unprecedented premium" compared to its software peers, highlighting the rarity of such high multiples in the industry [4][5] Historical Context - Historical data shows that every software stock that exceeded a forward P/S ratio of 50 in the past decade experienced a decline of at least 62% after reaching peak valuations, with an average decline of 77% [5][10] - If Palantir follows this trend, a peak-to-trough decline of 77% could bring its share price below $29 [6] Long-term Potential - Despite short-term volatility, analysts suggest that Palantir could still be a rewarding long-term investment, with projections indicating it could become a trillion-dollar company if it achieves 30% annual revenue growth over the next decade [7][8] - If Palantir's revenue reaches approximately $40 billion by 2035 and trades at a valuation of 25 times sales, it could imply a 400% upside from its current market value of $200 billion [8] Cautionary Notes - While aggressive assumptions are made in long-term projections, it is advised to avoid investing in Palantir until it trades at a more favorable valuation [9]

Palantir Technologies (PLTR -5.08%) is a data analytics company that experienced significant revenue growth due to artificial intelligence (AI). It has been on a tear over the past 12 months, soaring around 270% during that time. It has established itself as one of the top AI stocks to own.One much smaller stock that is also involved in data analytics and AI, which has also been hot of late, is BigBear.ai (BBAI -10.02%). Its gains of 60% over the past year trail Palantir -- particularly after a steep drop i ...

Palantir stock is up by more than 1,000% in less than five years.When it comes to scorching hot artificial intelligence (AI) stocks, investors need not look much further than the "Magnificent Seven" -- Nvidia, Microsoft, Alphabet, Amazon, Tesla, Meta Platforms, and Apple.Beyond the megacap tech giants, however, a select few other companies are holding their own in the AI realm. In particular, the performance of data analytics software specialist Palantir Technologies (PLTR 1.67%) has been nothing short of r ...

Palantir Technologies emerged as a dominant player in the booming enterprise AI market.Shares of Palantir Technologies (PLTR 1.67%) are up 280% in the past year. Although an impressive run-up, it is still nearly 30% lower than its three-year high of $125 on February 18. The company delivered an exceptionally strong fourth-quarter report on Feb. 3, showing that its revenues rose 36% year over year to $828 million, significantly exceeding the analysts' consensus estimate of $775 million. That top-line growth ...

Group 1 - Palantir was originally rated as a top tech pick for the 2020s and has outperformed the S&P 500 by almost 5 times since then [2] - Despite its strong performance, the company has been downgraded [2] - The Value Portfolio focuses on building retirement portfolios using a fact-based research strategy that includes extensive analysis of 10Ks, analyst commentary, market reports, and investor presentations [2] Group 2 - The analyst has a beneficial long position in Palantir shares through stock ownership, options, or other derivatives [3] - The article expresses the analyst's own opinions and is not compensated for it, except from Seeking Alpha [3] - Seeking Alpha clarifies that past performance is not a guarantee of future results and does not provide specific investment recommendations [4]

Rolls-Royce, the engine maker that’s been one of the hottest stocks in Europe over the last two years, extended its winning ways on Thursday after beating analyst expectations and setting medium term guidance that points to continued growth.Rolls-Royce shares UK:RR surged 15% in London to a new record high. ...

The company could end up leaving billions on the table.Palantir (PLTR 1.67%) has been one of the stock market's biggest success stories over the last two years.Shares of the AI software company, which is best known for its work with government defense and intelligence agencies, have soared by 1,000% in that period, and were up by nearly 1,500% before a recent pullback. The company gained favor with investors and clients largely due to its Artificial Intelligence Platform (AIP), which has enhanced the utilit ...