Will C3.ai Be the Palantir of 2025?

Core Insights - Palantir Technologies was the top-performing stock in the S&P 500 in 2024, with shares increasing by approximately 350% [2] - C3.ai is emerging as a potential competitor to Palantir, with significant growth in revenue and strategic partnerships [3][5] Company Performance - C3.ai's revenue growth rate has accelerated significantly, reaching 29% year-over-year in Q2 of fiscal 2025, up from 11% in Q1 of fiscal 2024 [5] - Nearly half of C3.ai's new bookings are from aerospace and defense, with another 30% from manufacturing, energy, utilities, and life sciences [5] Strategic Partnerships - C3.ai has established partnerships with major tech firms like Microsoft, Amazon, and Alphabet, as well as consulting firms such as Booz Allen Hamilton and Capgemini, which have helped expand its market reach [4][5] Valuation Comparison - C3.ai's price-to-sales (P/S) ratio is significantly lower than Palantir's, indicating a disparity in valuation despite C3.ai's growing revenue [7][8] - Palantir is generating positive net income, while C3.ai is still operating at a loss, which contributes to the valuation differences [9] Future Outlook - C3.ai is seen as being in the early stages of growth, with revenue accelerating and net losses decreasing, but profitability is projected to be a few years away [11] - Investment in C3.ai is considered speculative, suitable for investors with a higher risk tolerance and a long-term holding strategy [12][13]