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Is C3.ai Stock the Next Palantir and a Buy?
PLTRPalantir Technologies(PLTR) ZACKS·2025-02-20 21:05

Core Insights - Palantir Technologies Inc. (PLTR) shares have increased by 388.7% over the past year, marking a significant recovery after a challenging initial public offering [1] - C3.ai, Inc. (AI) has seen its shares rise by 17.5% in the past year, driven by strong government business and accelerated revenue growth [2] Group 1: Palantir Technologies Inc. (PLTR) - Palantir reported revenues of 2.87billionforthelastyear,reflectinga292.87 billion for the last year, reflecting a 29% increase from the previous year, largely due to the adoption of its Artificial Intelligence Platform (AIP) [2] - The net dollar retention rate improved in Q4 2024, indicating that existing customers are increasing their spending on Palantir's products, leading to reduced revenue generation costs and improved growth margins [3] - The remaining deal value (RDV) rose by 40% to 5.4 billion compared to the previous year, suggesting that Palantir's growth is expected to accelerate, with RDV projected to surpass last year's revenues [4] Group 2: C3.ai, Inc. (AI) - C3.ai's revenues increased by 29% year over year to 94.3millioninthefiscalsecondquarter,drivenbythepopularityofitsreadytouseAIprogramsamongexistingcustomers[5]StrategicpartnershipswithMicrosoftandGoogleCloudareenhancingC3.aisbusinessgrowth,withthecompanytargetingrevenuegrowthof2294.3 million in the fiscal second quarter, driven by the popularity of its ready-to-use AI programs among existing customers [5] - Strategic partnerships with Microsoft and Google Cloud are enhancing C3.ai's business growth, with the company targeting revenue growth of 22% to 28% for the current year [6] - Despite its growth, C3.ai is projected to incur an adjusted operating loss of 105 million to $135 million for fiscal 2025, contrasting with Palantir, which reported a profit last year [9]