Welcome back to Market on Close. I'm Sam Bardis live from the floor of the New York Stock Exchange. It's time now for overlooked stocks.So shares of terror data have rallied to a new 52- week high after its latest earnings report. So let's learn more about this overlooked name with George Sllis, a senior markets correspondent. What did the report say.Because this is a real bright spot in the market today up at 28%. George. >> Yeah, it is.It's a it's a bright spot in the market. It's really a bright spot in ...

Core Insights - Palantir Technologies Inc. (PLTR) is distinguished in the enterprise data and AI analytics sector due to its scalable AI-driven platform, strong revenue growth, and reliable cash flows, making it an attractive investment opportunity [2][6]. Revenue Growth - Palantir's fourth-quarter 2025 revenues from U.S. commercial clients reached $507 million, reflecting a 137% year-over-year increase and a 28% quarter-over-quarter rise [3]. - The government segment also saw significant growth, with revenues increasing 66% year-over-year and 17% sequentially to $570 million [3]. Future Projections - The company forecasts full-year 2026 revenues between $7.182 billion and $7.198 billion, more than doubling the $3.320 billion reported in 2025 [4]. - The remaining deal value for U.S. commercial clients reached $4.38 billion in Q4 2025, up 145% year-over-year and 21% sequentially, indicating strong growth momentum [4]. Profitability and Business Model - Palantir anticipates consistent improvement in GAAP operating income and net income throughout 2026, supported by a Rule of 40 score of 127%, significantly above the 40% benchmark [5]. - The company possesses a strong competitive advantage with its flagship platforms, Gotham and Foundry, which face minimal competition, ensuring predictable cash flows [5]. Market Sentiment - Analysts are optimistic about Palantir's growth, with an average short-term price target of $201.38, representing a 40.9% increase from the last closing price of $142.91, and the highest target suggesting an 81.9% upside [9]. - The Zacks Consensus Estimate for Palantir's earnings per share (EPS) is $1.34, indicating a 100% year-over-year growth, and the company holds a Zacks Rank 2 (Buy) [11].

Core Insights - The focus should extend beyond the "Mag 7" companies in AI, as there are significant opportunities in other firms that are not part of this group [2][3] - The Futurum AI 15 includes companies like Cloudflare, which are seen as key players in the AI landscape [2][3] Infrastructure Layer - The AI infrastructure is categorized into three layers: control layer (infrastructure), operating layer (software), and utility layer (energy and capacity) [3] - Key companies in the control layer include Micron, AMD, Intel, and TSMC, while the operating layer features Cloudflare and Snowflake [3] Memory Sector - Micron is projected to quadruple its earnings this year and double its revenue, indicating a strong position in the memory market [11][12] - The current cycle in memory is more constrained than compute, providing Micron with significant pricing power [12][14] AI Investment Landscape - Companies that effectively utilize AI to enhance productivity and profitability are considered attractive investments [17][18] - There is skepticism about the sustainability of many companies trying to capitalize on the AI trend without a clear monetization path [16][18] Market Dynamics - Nvidia is highlighted as a major beneficiary of the $700 billion capital expenditure commitment, capturing 40-50% of that investment [9][10] - The market is experiencing a repricing of software categories, with a distinction between companies that will thrive and those that may not survive [7][8] Company-Specific Insights - Meta is identified as a strong investment due to its substantial revenue generation from AI initiatives [17] - Microsoft is viewed positively despite recent sell-offs, attributed to concerns around OpenAI, which is part of a larger backlog comparable to Amazon and Google [22][23] - Tesla's stock performance is influenced by differing shareholder perspectives on its future as a tech company versus a traditional car manufacturer [25] - Palantir is recognized for its growth but is considered expensive relative to its peers, reflecting the broader software market repricing [26]

Core Viewpoint - The software sector is experiencing significant declines due to fears that AI advancements will disrupt existing software companies, leading to a sell-off on Wall Street [1][2][6]. Group 1: Market Impact - ServiceNow (NOW) stock has decreased by over 22% since January 29, while Thomson Reuters (TRI) has fallen more than 26% as of Wednesday. Intuit (INTU) shares are down over 26%, and Snowflake (SNOW) has shed 18%. Salesforce (CRM) has dropped more than 20% [2]. - The release of new AI tools by Anthropic and OpenAI has intensified concerns that these companies will either create competing software or enable businesses to develop their own, posing a threat to traditional software firms [1][2]. Group 2: Analyst Perspectives - Some analysts believe the panic in the market is an overreaction, suggesting that AI will not replace existing software companies but rather enhance their services [3][4]. - William Blair analyst Jason Ader noted that the current market reaction resembles a "baby-with-the-bath-water" situation, indicating that not all software companies are equally at risk [4]. Group 3: AI Industry Developments - The AI industry has made significant advancements since the launch of ChatGPT in 2022, changing how tasks are performed but it is premature to declare AI companies as the new leaders in enterprise software [5]. - The uncertainty surrounding the potential impact of AI on the software industry has led to a broader sell-off, with investors seeking safer investments in sectors perceived as more stable [6][7].

Housing Market Insights - Redfin reported over 40,000 home purchase agreements were canceled in December, representing 16.3% of all homes under contract, the highest monthly cancellation rate since tracking began in 2017 [1] - The S&P Case-Schiller Home Price Index declined by 0.1% in November and grew just 1.4% year over year, indicating a slowdown in home price growth compared to previous years [1] - 75% of homes on the market are deemed unaffordable for the average American household, with a required annual income of $113,000 to afford a median-priced home of $430,000, while the median household income is around $80,000 [1] Retirement Planning Considerations - The conversation highlighted the emotional and financial complexities involved in deciding when to retire, emphasizing the uncertainty that comes with such a decision [3][6] - Financial planning tools, including spreadsheets and online calculators, are utilized to project retirement savings and assess financial readiness [4][5] - The importance of networking with recently retired individuals to gain insights into retirement experiences and expectations was discussed [8][9] Healthcare and Retirement - Healthcare costs are a significant concern for those considering early retirement, with discussions around the affordability of insurance options before Medicare eligibility [12][13] - The potential need for continued employment or alternative work arrangements to secure health benefits was noted as a critical factor in retirement planning [13] Future Retirement Plans - The discussion included thoughts on transitioning rather than fully retiring, with specific dates being considered for potential changes in work status [14] - The impact of personal circumstances, such as family obligations and job satisfaction, on retirement timing was acknowledged [15]

Core Insights - Palantir (PLTR) has evolved from a government-focused analytics firm to a significant player in the enterprise AI sector, enhancing its commercial relevance [1][8] Group 1: Product and Service Offerings - Platforms like Foundry and Gotham, along with new AI offerings, are designed to help organizations consolidate data, streamline operations, and make informed decisions, emphasizing actionable insights [2] - Palantir's software is utilized across various sectors, including defense and industrial operations, showcasing its versatility in data organization and application [2] Group 2: Market Position and Relationships - The company benefits from strong public-sector relationships, providing stability and credibility through long-term contracts, which is a competitive advantage over many fast-growing tech firms [3] - There is increasing traction in the commercial segment as more companies transition from testing AI tools to large-scale deployment, supported by Palantir's platform structure that encourages usage expansion and client retention [3] Group 3: Financial Performance and Valuation - PLTR's stock has seen a decline of 25% over the past year, compared to a 20% decline in the industry [7] - The company trades at a forward price-to-sales ratio of 43.97X, significantly higher than the industry's average of 4.09X, indicating a premium valuation [8][9] - The Zacks Consensus Estimate for PLTR's 2026 earnings has increased over the past 60 days, reflecting positive sentiment [9][10]

Group 1 - Market professionals believe that the recent sell-off in software stocks has been excessive, creating new buying opportunities at lower prices [1][4] - Morgan Stanley strategists noted the potential for a rebound in the software market due to overly pessimistic expectations regarding AI disruption and strong fundamentals [1] - Jefferies found that 42% of the software stocks they cover are trading at or near historical undervaluation levels, indicating potential for a strong rebound [4] Group 2 - The S&P North American Software Index's expected price-to-earnings ratio recently fell below 20 for the first time, currently around 23, significantly lower than its long-term average of 34 [1] - A notable ETF tracking the software industry experienced a 15% drop over eight trading days but rebounded by 7.2%, with retail investors showing record buying activity [4] Group 3 - Companies like Microsoft, Snowflake, ServiceNow, Salesforce, and Palantir Technologies have been mentioned as long-term winners that have also suffered during the sell-off [5] - Snowflake's stock dropped 27% in a short period, but it is positioned favorably within the AI ecosystem, having signed significant partnerships with OpenAI and Anthropic [6] Group 4 - Concerns about AI coding replacing existing software packages have contributed to the negative sentiment in the software market, with recent market declines linked to new AI tools released by companies like Anthropic and Alphabet [8] - Despite the uncertainty, industry research predicts a 14.1% earnings growth rate for the software and services sub-sector by 2026, which is higher than the expected growth rate for the S&P 500 [8] Group 5 - Some companies, like Monday.com and S&P Global, have faced disappointing earnings forecasts, leading to significant stock price declines [9] - However, the overall performance of software companies in the current earnings season has been strong, with 10 companies exceeding earnings expectations, indicating that the negative trend may not be severe enough to deter investors [9]

Core Insights - Experian has launched its Aperture Data Studio integration with Snowflake, enhancing data quality capabilities for organizations [1] - The integration allows organizations to profile, transform, and validate data directly within the Snowflake platform [1] - This collaboration aims to mobilize global data to assist organizations in their data management efforts [1]

Sridhar Ramaswamy is the CEO of Snowflake. Ramaswamy joins Big Technology Podcast to break down the competitive dynamics in the AI race today, drawing from his experience working at Google and competing with it. We also cover the future of software, looking at whether AI will turn established software companies into "dumb backends." In the second half, we discuss “shadow AI” driving enterprise adoption from the bottom up, the risk of becoming a feature in someone else's platform, and why Chinese open-source ...

Core Viewpoint - Software stocks are expected to rebound from historic lows as the market has overly pessimistic expectations regarding AI's short-term disruption of the software industry, according to JPMorgan strategists [1][5]. Group 1: Market Sentiment and Stock Performance - The software sector has fallen to its lowest level since the market turmoil in April last year [4]. - Concerns over new AI tools potentially disrupting traditional Software as a Service (SaaS) business models have led to sustained pressure on U.S. software stocks [1][5]. - The recent sell-off did not differentiate between companies with AI partnerships or proprietary data assets, affecting nearly all related software companies equally [1]. Group 2: Company Resilience and Long-term Outlook - Companies like Microsoft and CrowdStrike are highlighted as resilient players in the AI space, likely to benefit from AI-enhanced workflow efficiencies [5]. - The high switching costs and long-term contracts in enterprise software provide a buffer against short-term disruptions [5]. - The long-term fate of traditional software companies in the face of AI remains uncertain, but current market pessimism appears to be an overreaction [5]. Group 3: Analyst Perspectives - Analysts from Morgan Stanley believe that U.S. tech stocks still have room for further gains, and the decline in software stocks has created an attractive entry point [5]. - Wedbush analysts argue that the market's reaction to AI risks is excessive, suggesting that the current sell-off implies an extreme assumption of widespread AI disruption, which is not feasible [6]. - The caution of enterprise clients regarding AI migration is emphasized, as many are reluctant to expose core data to immature new platforms [6]. Group 4: AI Integration and Market Dynamics - The narrative that AI will replace entire enterprise software stacks is overly simplistic; the value density of enterprise software lies in proprietary data and compliance structures [8][9]. - AI is more likely to integrate as embedded tools within existing software platforms rather than completely replacing them [6][9]. - The current sell-off reflects a market response to the question of how much profit pools in SaaS will be redistributed due to AI [10]. Group 5: Future Indicators and Investment Strategy - The rebound in software stocks may depend on two hard indicators: the speed of real deployment and payment expansion by enterprises, and the elasticity of SaaS companies' AI-related product revenues [10]. - Companies with strong data assets and solid fundamentals, such as Microsoft, MongoDB, Snowflake, Palantir, and SAP, are likely to experience a robust rebound post-panic [10].