The Motley Fool·2025-11-16 15:49Core Insights - The stock market has seen a positive trend in 2025, with the S&P 500 index up by 16% year to date, but individual stocks like Palantir Technologies and Quantum Computing Inc. have shown significant volatility and may warrant profit-taking considerations [1][2]. Palantir Technologies - Palantir Technologies has experienced a remarkable 153% increase in share price year to date, benefiting from the rise of large language models (LLMs) and maintaining strong connections in defense and law enforcement sectors [3][5]. - The company's market capitalization has reached $461 billion, making it larger than any public company in Europe or Japan, and the 19th largest in the U.S. [5]. - Despite its growth, Palantir's valuation is high, trading at a forward price-to-earnings (P/E) multiple of 262, which is significantly higher than other AI-related stocks [6]. - Third-quarter revenues increased by 63% year over year to $1.2 billion, but high market expectations may overshadow even strong performance [8]. Quantum Computing Inc. - Quantum Computing Inc. has seen a sharp decline since early October, erasing its 2025 gains and leaving it down approximately 40% year to date, despite a 600% increase over the last 12 months [9][10]. - The company operates in the quantum computing hardware market, where valuations are driven more by hype than by actual revenues or profits [9]. - Analysts suggest that commercially viable quantum computers may not be available until 2040, with significant technical challenges remaining [11]. - In the second quarter, Quantum Computing Inc. reported a 66% drop in revenue to $61,000, while losses nearly doubled to $10.2 million, raising concerns about its financial sustainability [13].