The Motley Fool·2025-07-22 10:00Group 1: Market Overview - The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average are up 7%, 8%, and 5% respectively in the first half of 2025 [1] - Three stocks have more than doubled the return of the S&P 500: Meta Platforms, International Business Machines, and Palantir Technologies [1] Group 2: Meta Platforms - Meta's shares are up 20% year to date, nearly tripling the S&P 500's return [4] - The company generates approximately $470 million in revenue daily, supported by over 3 billion daily average users across its platforms [4] - Meta's operating margin stands at 43%, ranking third among the "Magnificent Seven" tech companies [5] - The company is investing heavily in AI infrastructure and plans to roll out automated advertising by the end of 2026, potentially creating new revenue streams [6][7] Group 3: International Business Machines (IBM) - IBM's stock is up 30% in 2025, recovering from struggles in the 2010s [10] - The company’s revenue rose by only 1% in Q1 2025, but its software segment grew by 7% [10] - IBM has approved its 30th consecutive dividend increase, with an annual dividend of $6.72 per share, yielding around 2.4% [11] - The forward P/E ratio of 26 suggests potential financial improvement, making IBM attractive for both income and growth investors [12] Group 4: Palantir Technologies - Palantir's stock has gained 1,600% over the past three years, including a 100% increase since the start of 2025 [15] - The company has fewer than 450 U.S. commercial customers, indicating significant growth potential in a market with 20,000 large businesses [14][15] - Analysts estimate Palantir will grow earnings by an average of 31% annually, but it trades at a forward P/E ratio of 261, which is significantly higher than the S&P 500's 22 [16][17]