Better Tech Stock: Palantir vs. Reddit

Core Insights - Palantir Technologies and Reddit have experienced significant stock price increases over the past year, with Palantir shares rising over 250% and Reddit's stock climbing from a low of $37.35 to a high of$230.41 [1][2] - Recent market volatility has led to a decline in stock prices for both companies, making it a potential buying opportunity [2] Palantir Technologies - Palantir is positioned to benefit from the growing artificial intelligence industry, with its AI Platform (AIP) enabling organizations to implement AI quickly [3] - The company reported $2.9 billion in revenue for 2024, a 29$2.2 billion in 2023, and achieved a gross margin of 80%, resulting in a net income of $468 million, up from$217 million in 2023 [4] - Palantir is expanding into the manufacturing sector with its new product, Warp Speed, aimed at enhancing manufacturing processes through AIP [5] Reddit - Reddit's stock surged 165% over the past year, driven by strong user growth, with daily active unique users (DAUq) reaching 101.7 million, a 39% year-over-year increase [6][7] - The company achieved $1.3 billion in revenue for 2024, representing a 62$804 million in 2023, and reported a gross margin of 90.5%, up from 86.2% the previous year [8] - Despite a net loss of $484.3 million for the full year due to IPO-related costs, Reddit ended Q4 with a net income of$71 million, indicating potential for future profitability [9] Future Projections - Both companies anticipate continued revenue growth in 2025, with Palantir forecasting Q1 revenue of at least $858 million (a 35$360 million and $370 million (a minimum 48% increase) [10] - Reddit's forward price-to-earnings (P/E) ratio is 36, significantly lower than Palantir's 156, suggesting that Reddit may offer better value for investors [12]