BREAKING: Futures Rise After S&P 500, Nasdaq Hit Fresh Highs What Palantir Does A maker of data analytics software, Palantir was founded in 2003 by Peter Thiel (current chairman of the board), Nathan Gettings, Joe Lonsdale, Stephen Cohen and Alex Karp, the current chief executive. It was backed, in part, by nearly $2 million from In-Q-Tel, the CIA's venture capital arm. The company name is derived from the palantiri, crystal… Take a Trial Today Get instant access to exclusive stock lists, expert market anal ...

Core Insights - Palantir Technologies shares have increased by 105% this year, while CoreWeave shares have risen by 115%, but analysts predict significant losses ahead for both companies [1] - Palantir's current share price is $155, with a target price set at $60, indicating a 61% downside potential [6] - CoreWeave's current share price is $88, with a target price of $36, suggesting a 59% downside [6] Palantir Technologies - Palantir specializes in data analytics software, enabling users to integrate and visualize complex information for decision-making in various sectors [3] - The company reported a 43% increase in customers, reaching 849, and a 28% rise in average spending per customer, leading to a 48% revenue surge to $1 billion [5] - Palantir's price-to-sales ratio is 115, making it the most expensive stock in the S&P 500, with potential for a significant price drop [8] - The company is well-positioned for growth, with AI spending expected to rise by 36% annually through 2030, potentially allowing Palantir's sales to grow over 20% annually [7] CoreWeave - CoreWeave focuses on cloud infrastructure and software services tailored for AI workloads, achieving 20% better performance than traditional data centers [9] - The company reported a 207% revenue increase to $1.2 billion, with a non-GAAP operating income rise of 135% to $200 million, but a widened non-GAAP net loss of $131 million [10] - High interest payments, totaling $267 million in the second quarter, are a significant factor in the company's financial performance, impacting profitability until at least 2027 [11][12] - CoreWeave's valuation at 10 times sales is considered reasonable, with revenue expected to grow at 127% annually through 2026, suggesting potential resilience against predicted stock declines [13]

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]

Core Insights - Palantir Technologies has significantly benefited from the AI boom, achieving a 340% gain last year and a 66% gain this year, making it one of the top performers in the S&P 500 [1] - The company is popular among retail investors, but concerns about its valuation have emerged after substantial returns over the past two years [2] - Analyst Dan Ives predicts Palantir could reach a market value of $1 trillion in two to three years, suggesting a 245% upside from its current valuation of $290 billion [2] Company Overview - Palantir is a leader in decision-intelligence software and AI platforms, providing data analytics software that integrates information for improved decision-making [5] - The company offers an AI platform called AIP, which enhances its data analytics capabilities with natural language processing, allowing users to interact with the platform conversationally [6] Market Position - Palantir has been recognized as a market leader in decision intelligence software by IDC and as a technology leader in AI and machine learning by Forrester Research, positioning it well for future growth [7] - The AI platform market is expected to grow at an annual rate of 40%, reaching $153 billion by 2028 [7] Financial Performance - In the first quarter, Palantir reported a 39% increase in customers, reaching 769, and a 24% rise in average spending per customer, contributing to a 39% revenue increase to $884 million [8] - Non-GAAP earnings rose 62% to $0.13 per diluted share, driven by strong sales growth in the government segment [8] Valuation Concerns - Despite strong performance, Palantir's stock is considered very expensive, trading at 64 times forward sales, significantly higher than its closest competitor, CrowdStrike, at 18 times [10] - Analysts suggest that even a 70% drop in Palantir's stock price would still leave it as one of the most expensive software stocks [11]

Group 1: Market Overview - In 2024, technology stocks involved in artificial intelligence (AI) led the Nasdaq-100 index higher, while healthcare stocks struggled due to concerns about Robert F. Kennedy's nomination for Health and Human Services Secretary [1] - In 2025, the technology sector has disappointed investors, while healthcare stocks have led the U.S. market higher, with Gilead Sciences being the best performing member of the Nasdaq-100 index as of March 9, achieving a year-to-date return of 27% [1] Group 2: Company Performance - AppLovin reported a 44% increase in revenue to $1.3 billion in Q4, with non-GAAP net income more than tripling, but the stock has fallen 47% from its high this year due to negative reports from short sellers [3] - Palantir consistently beat Wall Street's expectations with its financial results last year, but the stock has fallen 32% from its high this year due to concerns about insider selling and possible Pentagon budget cuts [4] - Nvidia, the market leader in data center GPUs, has seen its stock fall 25% from its high this year due to concerns about the sustainability of AI infrastructure spending and export restrictions [5] Group 3: Analyst Sentiment - Despite recent declines, Wall Street remains predominantly bullish on AppLovin, Palantir, and Nvidia, with median target prices implying substantial upside for shareholders [6] - AppLovin's median target price of $555 per share implies 132% upside from its current share price of $239, Palantir's median target price of $97 per share implies 22% upside from its current share price of $79, and Nvidia's median target price of $175 per share implies 65% upside from its current share price of $106 [10] Group 4: Gilead Sciences - Gilead Sciences is a pharmaceutical company with a strong presence in the HIV and oncology markets, known for developing the first once-daily tablet for HIV treatment and receiving approval for a pre-exposure prophylaxis (PrEP) HIV medication [7] - Gilead reported Q4 financial results that beat Wall Street expectations, with revenue increasing 6% to $7.6 billion and non-GAAP net income increasing 10% to $1.90 per diluted share [8] - Gilead anticipates regulatory approval of twice-yearly lenacapavir injections for HIV pre-exposure prophylaxis in the U.S. and updates from two phase-3 clinical trials involving Trodelvy, which has been designated as a breakthrough therapy by the FDA [9][12] - Gilead shares trade at a reasonable price, with Wall Street expecting adjusted earnings to increase at 32% annually over the next two years, making the current price-to-earnings (PE) multiple of 25 look fair [13]

Core Viewpoint - The recent decline in AI stocks, including Palantir Technologies, raises questions about potential buying opportunities despite a significant drop in stock price [1][4]. Company Overview - Palantir Technologies has experienced a stock decline of over 35% from its all-time high, yet it remains a popular choice among AI stocks due to its advanced data analytics software [1][4]. - The company originally focused on government applications but has expanded its software use to commercial sectors, with government revenue still constituting the majority of total revenue [1]. Product Innovation - Palantir's AIP (Artificial Intelligence Platform) allows clients to integrate AI into their business operations, enhancing control over sensitive information and promoting AI usage among employees [2][3]. Financial Performance - In Q4, Palantir's revenue increased by 36% year-over-year to $828 million, with expectations of continued growth into 2025, projecting Q1 revenue of $860 million and 2025 revenue of $3.75 billion [4][11]. - The company remains profitable, although profit margins were impacted by a spike in stock-based compensation due to management rewarding employees for strong performance [5][6]. Valuation Concerns - Valuing Palantir's stock is challenging due to the lack of sustained earnings; the forward P/E ratio stands at 150, indicating a potentially overpriced stock [7][8]. - Projections suggest that if Palantir achieves $10.6 billion in revenue and $3.19 billion in profits over the next five years, it would still be valued at 61.3 times earnings, indicating a lack of margin of safety in the current stock price [8][9]. Growth Projections - Palantir's revenue growth is expected to remain around 30% over the next five years, with profit margins potentially rising to 30%, positioning it among top software companies [11].

Snowflake shares popped more than 13% Thursday after the data analytics software company posted stronger-than-expected fourth-quarter results.The company reported adjusted earnings of 30 cents per share on $987 million in revenue, surpassing the 17 cents per share and $956 million in sales expected by analysts polled by LSEG. That reflected 27% year-over-year revenue growth."We see tremendous opportunities ahead to support our customers throughout their end-to-end data lifecycle, and we are laser-focused on ...