This Under-the-Radar Stock Could Be the Next Palantir

Core Viewpoint - Palantir Technologies has experienced significant stock growth, with shares increasing over 2,200% since the beginning of 2023, but its high market cap of $350 billion and price-to-sales ratio over 100 suggest future returns may be weak [1][2] Company Overview: The Real Brokerage - The Real Brokerage is a cloud-based digital brokerage aimed at modernizing the residential real estate market, which has been slow to adopt digital tools and continues to operate with high commission rates [4][5] - By eliminating physical offices and adopting a software-first approach, The Real Brokerage can offer lower transaction costs to real estate agents, making it an attractive alternative to traditional brokerages [6] Growth Metrics - The Real Brokerage has seen a 61% year-over-year increase in the number of agents, reaching approximately 27,000, which has contributed to a 76% revenue increase in the first quarter of 2025, totaling $354 million [7] - Since going public, The Real Brokerage's revenue has surged over 10,000% cumulatively, positioning it as one of the fastest-growing companies globally [8] Market Conditions - Despite a slowdown in existing home sales in the U.S. due to high interest rates, The Real Brokerage is gaining market share and is expected to benefit when the market rebounds [9][10] - The current environment has seen annualized transactions drop to 4 million, down from around 6 million in a typical market, indicating potential for future growth as conditions improve [9] Technological Innovation - The Real Brokerage is leveraging AI technology, having launched Leo AI, a digital concierge for real estate agents, to streamline the home buying and selling process [12] - The company aims to develop an AI-assisted real estate portal to compete with established players like Zillow Group, indicating ambitious long-term growth plans [13] Financial Position - The Real Brokerage currently has a market cap of $823 million and is close to breakeven, generating $128 million in gross profit while growing revenue at over 50% year-over-year [14]