Palantir or MicroStrategy: Better Buy in Nasdaq 100 for 2025

Core Viewpoint - Palantir Technologies Inc. and MicroStrategy Incorporated have been included in the Nasdaq 100, reflecting strong market confidence in their fundamentals, with Palantir's shares up 369.2% and MicroStrategy's shares up 476.6% year to date [1][2]. Group 1: Company Performance - Palantir's revenue from commercial contracts increased by 54%, while government revenue grew by 40%, driven by the popularity of its Artificial Intelligence Platform (AIP) [2]. - Palantir's net-dollar retention rate improved to 118% from 107% year-over-year, indicating strong customer retention and growth [2]. - MicroStrategy plans to raise $42 billion over the next two years to enhance its Bitcoin holdings, aiming to solidify its position as the largest Bitcoin treasury company [4]. - MicroStrategy's core software sales declined by 10% year-over-year in the previous quarter, raising concerns about its performance [8]. Group 2: Financial Metrics - Palantir's projected revenues for the year are expected to reach $2.8 billion, a 25% increase from $2.23 billion in 2023, with earnings per share projected to rise by 31% to $0.38 [12]. - Palantir maintains a positive net profit margin of 18%, while MicroStrategy has a negative net profit margin of 87.1%, indicating significant operational challenges [16]. - MicroStrategy currently holds 439,000 BTC valued at approximately $41 billion, which may enhance its liquidity following its Nasdaq 100 inclusion [14]. Group 3: Market Dynamics - The inclusion in the Nasdaq 100 is expected to increase demand for both companies' shares from exchange-traded funds tracking the index [2]. - The volatility of Bitcoin prices significantly impacts MicroStrategy's stock performance, as evidenced by an 11% decline in Bitcoin leading to a 31% drop in MicroStrategy's stock price [8][15].