Duquesne Family Office's billionaire chief dumped his fund's stake in Wall Street's artificial intelligence (AI) darling in favor of two reasonably cheap stocks that have taken off in recent years.Though earnings season is often viewed as the highlight of each quarter, there are a number of other data releases that can tell investors a lot about the health of the stock market. In particular, the filing of Form 13F with the Securities and Exchange Commission is, arguably, one of the most important quarterly ...

If executives and board members aren't buying their own company's shares, why should you? For the better part of the last three years, no trend has garnered more attention on Wall Street than the emergence of artificial intelligence (AI). The ability for AI-empowered software and systems to make split- second decisions without human oversight is a game changer for virtually all industries around the globe. Though a laundry list of companies in and out of the tech sector have benefited from the hype surround ...

Not all public companies riding next-big-thing trends will necessarily be winners. For the better part of the last three decades, investors have consistently had a game-changing innovation to latch onto. Since late 2022, no trend has shone brighter on Wall Street than artificial intelligence (AI). Empowering software and systems with AI gives these systems the ability to reason and make split-second decisions without the assistance of humans. More importantly, incorporating machine learning provides a pathw ...

Core Viewpoint - The rise of artificial intelligence (AI) has created significant opportunities for companies like Palantir Technologies, which specializes in data mining and AI solutions, leading to substantial stock price increases and investor interest [1][2][3]. Company Overview - Palantir Technologies has a long history of AI development, initially focusing on U.S. intelligence and law enforcement applications, and has evolved to address complex business problems through data analytics [5][6]. - The company launched its Artificial Intelligence Platform (AIP) to leverage company-specific data for tailored solutions, capitalizing on the growing demand for AI [6][7]. Financial Performance - In the fourth quarter, Palantir's revenue grew by 36% year-over-year, with adjusted earnings per share (EPS) increasing by 75%. U.S. commercial revenue, including AIP, rose by 64%, and the customer count in this segment jumped by 73% [9]. - The remaining deal value in the U.S. commercial segment increased by 99%, indicating strong future growth potential [9]. Market Sentiment - Despite strong financial performance, Wall Street remains cautious, with only 4 out of 25 analysts rating the stock as a buy, while 84% do not recommend it as a buy at present [13]. - Palantir's current valuation metrics show it trading at 210 times forward earnings and 57 times forward sales, which many consider excessively high, although the forward price/earnings-to-growth (PEG) ratio suggests it may be fairly valued [11][12]. Long-term Outlook - Industry experts believe that Palantir is well-positioned to benefit from the ongoing shift towards AI, especially as companies seek efficiency amid economic uncertainty [15][16]. - Investors are advised to adopt a long-term perspective, as stock price volatility is expected, with strategies such as dollar-cost averaging recommended for building positions over time [17].

Company Overview - Palantir is a data mining and analytics company that gathers data from various sources to identify trends and assist clients in making informed decisions [4] - The company operates two main platforms: Gotham for government clients and Foundry for commercial clients, with notable users including Morgan Stanley and Airbus [5] - Palantir was initially funded by the CIA's venture capital arm and has leveraged its government contracts for growth, including significant historical uses in national security [6] Stock Performance - Palantir's stock has increased over 40% year-to-date, contrasting with a decline of over 10% in the Nasdaq [2] - The company went public via a direct listing on September 30, 2020, and initially projected annual revenue growth of at least 30% through 2025 [7] - Palantir exceeded its growth estimates with 47% in 2020 and 41% in 2021, but saw a slowdown to 24% in 2022 and 17% in 2023 due to timing of government contracts and macroeconomic challenges [8] Financial Performance - In 2023, Palantir turned profitable on a GAAP basis after streamlining spending and reducing stock-based compensation [9] - Revenue increased by 29% in 2024, with GAAP earnings per share more than doubling, driven by growth in the U.S. commercial business and increased demand for government services [10] - For 2025, Palantir expects a revenue rise of 31% while maintaining profitability, with analysts projecting a compound annual growth rate (CAGR) of 31% for revenue and 51% for GAAP EPS from 2024 to 2027 [12] Market Position - Palantir's growing market capitalization and stable profitability led to its inclusion in the S&P 500 in September and the Nasdaq-100 in December [11] - The company's current market cap is $253 billion, trading at 67 times this year's sales and 354 times this year's GAAP EPS, indicating potentially overheated valuations [13] Challenges - The U.S. commercial business, which accounted for 24% of revenue in 2024, may face challenges due to tariffs and potential spending cuts from the Trump Administration [14] - The government business could also be impacted by proposed reductions in the U.S. defense budget, which may affect future contract acquisitions [14] - Concerns about missing ambitious targets again, as seen in 2022 and 2023, could lead to a reassessment of the stock's valuation [15]