These Growth Stocks Are Crushing the S&P 500 in 2025. Should You Buy Them?

Group 1: Palantir Technologies - Palantir Technologies is a leading provider of AI-powered data analytics software, with its stock rising 1,500% since 2022 and up 33% in 2025 as of April 23 [3][4] - The company reported a 64% year-over-year growth in U.S. commercial revenue in Q4, indicating strong demand for its services [4] - Palantir's U.S. government revenue grew 45% year-over-year in Q4, highlighting its role in enhancing military capabilities with advanced technology [5] - The company achieved a net profit of $462 million on$2.9 billion in revenue last year, showcasing its ability to convert growing revenues into profits [6] - However, the stock is trading at a high valuation of 548 times earnings, raising concerns about potential overvaluation and the possibility of a price correction [7] Group 2: Uber Technologies - Uber Technologies has seen its stock climb 200% since 2022 and 22% year-to-date through April 23, driven by significant investments in technology and service [8] - The company is expanding its services in the transportation market, including healthcare and freight, and has reached 30 million subscribers for its membership program, a 60% year-over-year increase [9] - Uber is investing in autonomous vehicle technology through partnerships with Google's Waymo and WeRide, with recent launches of its autonomous ride service in Austin and upcoming in Atlanta [10] - The company operates on a capital-light business model, resulting in an operating profit of $2.8 billion last year, with further growth potential as margins improve [11] - Analysts project Uber's earnings to grow at an annualized rate of 30% in the coming years, with shares available at a valuation of 23 times 2025 earnings estimates, suggesting satisfactory long-term returns [12]