Group 1: Palantir Technologies - Palantir Technologies is positioned to benefit from the transformative potential of artificial intelligence, with an implied upside of 184% from its current market value of $352 billion [4][9] - The company reported a 39% increase in revenue to $884 million, marking the seventh consecutive quarter of acceleration, driven by strong demand from U.S. commercial and government customers [6] - Non-GAAP earnings rose 62% to $0.13 per diluted share, and management raised full-year guidance, forecasting a 36% revenue increase in 2025 [6] - Palantir's unique ontology-based software operationalizes AI more effectively than competitors, creating a feedback loop that enhances decision-making and insights over time [5] - Despite its strong growth, Palantir trades at a high valuation of 325 times adjusted earnings, which raises concerns about its future performance [7] Group 2: AppLovin - AppLovin has an implied upside of 100%, with a 12-month bull-case target price of $700 per share, up from its current price of $350 [8][9] - The company reported a 40% revenue surge to $1.4 billion, driven by strong advertising segment performance, despite a decline in mobile games sales [11] - GAAP earnings increased 149% to $1.67 per diluted share, with guidance for 69% advertising sales growth in the second quarter [11] - AppLovin differentiates itself with a "best-in-class machine learning ad engine," which enhances its targeting capabilities through a network effect [10] - The company is testing a self-service platform to provide brands with greater control, which is expected to unlock significant opportunities [12] - Wall Street anticipates AppLovin's earnings to grow at 55% annually through 2026, making its current valuation of 64 times earnings appear reasonable [12]
2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 100% and 184%, According to Wall Street Analysts