Latest news with #Palantir
Globe and Mail
an hour ago
- Business
- Globe and Mail
Prediction: 2 Monster Growth Stocks Will Be Worth More Than Palantir Technologies by 2030
Palantir Technologies (NASDAQ: PLTR) stock has advanced 450% in the past year, and its $330 billion market value makes its one of the 30 most valuable public companies in the world. But I think AppLovin (NASDAQ: APP) and MercadoLibre (NASDAQ: MELI) can top that figure in four years or less. Here's what that would mean for shareholders: Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » AppLovin is worth $117 billion. The stock must increase 183% for its market value to hit $331 billion. MercadoLibre is worth $122 billion. The stock must increase 171% for its market value to hit $331 billion. Importantly, both stocks have topped those thresholds in the past. In the last three years, AppLovin and MercadoLibre shares advanced 925% and 275%, respectively. But these monster growth stocks can keep climbing higher. Here's why. AppLovin could top Palantir's current market value in three years AppLovin develops adtech software that helps developers market and monetize their applications across mobile and connected TV campaigns. Most advertising on its platform has traditionally focused on video games, but the company is attracting a broader variety of brands with its new e-commerce advertising product. AppLovin put a great deal of effort into building its Axon recommendation engine. It began acquiring game studios years ago to train the underlying machine learning models that optimize targeting, and the company has since released two major updates. The end result? Axon is superior to other campaign targeting engines as measured by return on ad spend, according to Morgan Stanley. AppLovin reported excellent first-quarter financial results. Total revenue increased 40% to $1.4 billion, as strong sales growth in the advertising segment offset a decline in the mobile games segment. Meanwhile, generally accepted accounting principles (GAAP) earnings climbed 149% to $1.67 per diluted share. And management guided for 69% advertising sales growth in the second quarter. Importantly, CEO Adam Foroughi recently discussed the success of its new e-commerce advertising product. He told analysts, "This opens up a massive opportunity, as there are over 10 million businesses who advertise online that could eventually use our platform profitably. By delivering incremental value, we position ourselves as an engine for growth." Wall Street expects AppLovin's earnings to increase at 49% annually over the next three to five years. That makes the current valuation of 62 times earnings look reasonable. Also, if the company maintains that pace for three years, its market value can hit $331 billion, while its price-to-earnings multiple falls to 54. AppLovin has carved out a strong presence in the adtech space due to its Axon recommendation engine. The company could surpass Palantir's current market value within three years, so patient investors should consider purchasing a small position in this monster growth stock today. MercadoLibre could top Palantir's current market value in four years MercadoLibre operates the largest online marketplace in Latin America. The company has consistently gained market share during the last three years, and that trend is expected to continue. One reason for that success is a network effect, whereby the platform becomes increasingly attractive to shoppers as more sellers list products, and increasingly attractive to sellers as more shoppers participate. MercadoLibre has reinforced and accelerated that network effect with adjacent solutions for fulfillment, advertising, financing, and payments. The company has built the fastest and most extensive delivery network in Latin America. It is the largest retail media advertiser in the region. And it owns the largest fintech platform in Argentina, Chile, and Mexico, and the second-largest in Brazil. MercadoLibre reported strong financial results in the first quarter. Revenue jumped 37% to $5.9 billion on especially strong sales growth in the fintech segment, which itself was due to adoption of credit cards, financing, and asset management products. Meanwhile, profit margin improved modestly, and GAAP net income increased 44% to $9.74 per diluted share. Wall Street estimates MercadoLibre's earnings will increase at 30% annually over the next three to five years. That makes the current valuation of 59 times earnings look reasonable. And if the company maintains that growth rate during the next four years, its market value can hit $331 billion, while its price-to-earnings multiple falls to 57. MercadoLibre enjoys a strong position in multiple growing markets, and the company could exceed what Palantir is worth today within four years. Regardless, patient investors should feel good about buying a few shares today. Should you invest $1,000 in AppLovin right now? Before you buy stock in AppLovin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
8 hours ago
- Business
- Globe and Mail
Is BigBear.ai a Buy?
Lots of investors are wondering how they can tap into the growth of artificial intelligence (AI), and one company many are likely considering right now is (NYSE: BBAI). The company's core service is AI data analytics, which has become important as companies look for better ways to sift through data and make decisions. The company's AI services can be used for anything from predictive analytics for national security to forecasting patient inflows for the healthcare industry. All this gives access to a wide variety of customers. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Still, has a lot to prove as this market takes shape. So, is it worth betting on stock right now? Here's what you need to know. Its stock price has soared, but it is still very volatile share price has spiked about 200% over the past year, making it a huge winner for some investors. It's hard to pin down exactly why investors have been so ecstatic about stock. I think it has more to do with the fact that it's a small AI start-up, and investors are prone to be a bit speculative with artificial intelligence companies right now. What's more, another AI data analytics company, Palantir, has attracted a lot of attention for its ability to win both government contracts and commercial customers. Palantir's sales rose 33% in the first quarter and closed 139 deals of at least $1 million. Some investors are likely seeing the success of Palantir, which is a strategic partner of and believe that could see the same success. But investors should know that stock is very volatile. While it's gained a lot over the past year, its stock price is down nearly 60% since mid-February, and is down by that same percentage since the company went public in late 2021. Revenue is unimpressive, and management has been unstable One thing you always want to see from young companies that are trying to tap into a new market is that they know how to increase sales. Of course, that's important for any company, young or old, but new companies should be increasing sales at a very rapid pace. Unfortunately, that's not the case for The company's revenue rose just 5% to $34.8 million in Q1 of this year. The company's management issued revenue guidance in the range of between $160 million to $180 million for the full year, which would be an increase of just over 7% at the midpoint. This type of low-percentage sales growth is typically what you see from established companies that don't have many new avenues to expand their sales, not from young start-ups. has also had problems holding on to its CEOs. The company is currently on its third CEO in just four years. The current CEO, Kevin McAleenan, was acting Secretary of the U.S. Department of Homeland Security under the first Trump administration and has led only since January. It's not a good sign to see a young company cycle through so many CEOs since going public in 2021. Companies need a long-term vision and stable leadership to ensure they follow through on their goals. hasn't proved it can do that yet. Verdict: Don't buy right now You probably saw this coming, but I don't think investors should buy stock right now. There's really not much to be excited about, since its sales are weak and the C-suite has been a complete mess. Those aren't positive signs for long-term investors. It appears that investors may be too focused on the fact that this company is an AI stock at a hot time for artificial intelligence and ignoring some of struggles. I think investors would be far better served by finding an established artificial intelligence company, rather than betting on right now. Its fortunes could change in the future, but I'd need to see sales rising significantly and a very stable leadership track record before considering this stock. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
14 hours ago
- Business
- Yahoo
M&A Watch: A String of Hot IPOs Could Spark Second-Half Dealmaking
Another pair of IPO gangbusters played out last week. On the heels of the outright fervor that came with CoreWeave (NASDAQ:CRWV) and Circle (NYSE:CRCL) earlier in Q2, shares of Voyager Technologies (NYSE:VOYG) soared by 82% on their first day of trading. The space- and defense-technology company saw its stock rise by triple digits (percent) intraday last Wednesdayinvestors were clearly excited about the firm's niche. Warning! GuruFocus has detected 10 Warning Signs with CRWV. Voyager partners with firms like Airbus, Mitsubishi, and Palantir (NASDAQ:PLTR) in low-orbit endeavors, and with Aerospace & Defense being among this year's top-performing industry groups, it's easy to see why shares lit up screens early on.[1] While the total IPO count is still low, the window seems cracked open. Following Voyager's stock taking flight mid-week, Chime Financial (CHYM) made its much-anticipated debut, raising $864 million after pricing above its initial estimated range.[2] CHYM was music to the bulls' ears, surging 39% on Thursday. Brokerage platform eToro (NASDAQ:ETOR)[3] and virtual physical-therapy company Hinge Health (NYSE:HNGE)[4] are other notable go-public stories in 2025, raising $310 million and $864 million, respectively, both of which priced above their anticipated ranges. So, animal spirits are alive and well, right? Not so fast. According to Wall Street Horizon's data, dealmaking numbers remain depressed. Total M&A announcements are merely flat on a year-on-year basis, continuing a trend that began some three years ago, after the capital markets boom of late 2020 and throughout 2021. Still-Sluggish M&A Trends Heading into 2H 2025 Source: Wall Street Horizon The hope was that a more favorable administration in the White House and a business-friendly Congress would get the ball rolling with looser regulations, fueling corporate decision-makers to shake hands and ink agreements. That bullish backdrop has not panned out. Instead, tariffs make the macro environment uncertain, and CEOs and CFOs are apparently unwilling to strike deals. Still, with massive rallies in some recent IPO stocks, bankers' hopes may just be rekindled. It's not a total M&A malaise, though. 2025 has brought about a rash of smaller buyouts valued at under a few billion dollars. In the first quarter, PepsiCo (NASDAQ:PEP) agreed to buy prebiotic soda brand Poppi for $1.6 billion. In the mortgage space, Rocket Cos. (NYSE:RKT) purchased Redfin (NASDAQ:RDFN) for $1.75 billion. Then, just last month, retailer Dick's Sporting Goods (DKS) scooped up Foot Locker (NYSE:FL) in a $2.4 billion cash and debt transaction. The shoe space is indeed kicking up activityrecall in early May that private equity firm 3G Capital agreed to buy Skechers (SKX) for $9.4 billion. In the tech space and during the throes of earnings season, Salesforce (NYSE:CRM) struck an $8 billion deal to purchase Informatica (INFA), bolstering its AI capabilities. To close out Q2, other deals have caught investors' attention, with the most notable being Brown & Brown's (BRO) $9.8 billion acquisition of Accession Risk Management. In the Health Care sector, BioNTech (BNTX) expanded its portfolio with the acquisition of CureVac (CVAC), a $1.25 billion equity deal, marking the end of a decades-long rivalry. Overseas, luxury goods maker Kering recently acquired Lenti, an Italian eyewear manufacturer.[5] Are these the blockbuster megamergers everyone longed for a year ago? Certainly not, but it does prove that the environment can be conducive to risk-taking under the right circumstances. Moreover, with peak tariff fear hopefully in the rearview mirror, at least according to the Economic Policy Uncertainty Index, the back half of 2025 might just feature an M&A rebirth.[6] Along with cooling trade-war concerns, a more upbeat outlook on the economy would likely spur deals. We've seen strategists reduce their recession forecasts, and online prediction markets suggest a less than one-in-three chance of a two-quarter US economic contraction this year.[7] More confidence at the macro level could help boost the appeal of buyouts and partnerships. And with central banks cutting interest rates at a fast clip (the US Federal Reserve notwithstanding), an easing of global monetary policy may make borrowing cheaper, enabling more leveraged deals and refinancing. Citi's head of banking expects more private-public get-togethers, which may offer a twist on the longed-for M&A upcycle.[8] The second quarter's final few trading days might actually present fresh breadcrumbs on the M&A pipelines heading into Q3. Ahead of Independence Day in the US, there's an active slate of shareholder meetings scheduled. Such events bring together stakeholders, and management teams present their strategic initiatives, which may include hints at key investments, such as M&A. Our data reveal that more than 1,800 Annual General Meetings will take place or have already occurred this month. Shareholder Meeting Volume Remains High Through June Source: Wall Street Horizon If you're looking for clues on overall C-suite vibes, you might want to monitor The Conference Board's Measure of CEO Confidence, which plunged in the second quarter to its lowest level since Q4 2022a time when recession fears were extremely high. It was the largest quarter-on-quarter decline in the survey's history, which dates back to 1976.[9] It's reasonable to expect a recovery in the next quarterly update in August, and if such a rebound comes to pass, then it may signal a greater collective risk appetite. Dealmaking isn't dead. There has been a steady diet of small to medium-sized mergers and acquisitions, but an outright M&A bonanza has simply not materialized. Global activity is also not all that bad, with significant corporate moves having been inked this quarter in Europe and Asia. But with an emerging IPO wave sweeping Wall Street, macro conditions may be shifting in favor of larger M&A transactions in the second half. 1 Voyager Technologies Rises in Debut, Signaling Improving IPO Market, The Wall Street Journal, Josh Beckerman, June 11, 2025, Digital bank Chime debuts advance wage product ahead of anticipated IPO, Reuters, Hannah Lang, May 15, 2024, Stock trading app eToro pops 29% in Nasdaq debut after pricing IPO above expected range, CNBC, Samantha Subin, May 14, 2025, Hinge Health prices IPO at $32, the top end of expected range, CNBC, Ashley Capoot, May 21, 2025, Kering Buys Italian Manufacturer Lenti in Eyewear Push, The Wall Street Journal, Andrea Figueras, June 10, 2025, Economic Policy Uncertainty Index for United States, Federal Reserve Bank of St. Louis, June 17, 2025, Recession this year?, Kalshi, June 17, 2025, Citi expects banking fees, trading revenue to climb despite US tariff "anxiety", Reuters, Tatiana Bautzer, Arasu Kannagi Basil, June 10, 2025, CEO Confidence Declined Significantly in Q2 2025, The Conference Board, May 29, 2025, Copyright 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
14 hours ago
- Business
- Globe and Mail
Cathie Wood Is Dumping Palantir Stock at Record Highs. Should You?
Palantir (PLTR) shares have been ripping to the upside in recent months with analysts like Dan Ives even predicting a $1 trillion market cap for the big data analytics firm in the coming years. However, influential investor Cathie Wood has been trimming exposure to the Denver, Colorado-based company to load up on the likes of GitLab (GTLB) instead. At the time of writing, Palantir stock is up some 115% versus its year-to-date low. Why Did Cathie Wood Sell Palantir Stock? The chief executive of Ark Invest unloaded close to 56,000 shares of PLTR this week worth about $7.4 million in total across three of her exchange-traded funds (ETFs). Wood hasn't publicly disclosed the reason for selling Palantir stock – but it's reasonable to assume that valuation concerns may have played a role in her decision. PLTR is currently going for a forward price-earnings ratio of well over 200x, which dwarfs the multiples on other high-growth stocks, even including Nvidia (NVDA). In fact, it's perhaps fair to state that at current valuation, Palantir is a name that has defied all traditional valuation metrics. Citi Sees Downside in PLTR Shares to $115 In his latest research, Citi analyst Tyler Radke also cited valuation concerns as he maintained his 'Neutral' rating on the Nasdaq-listed firm. Radke agreed that PLTR is seeing rapid adoption of its Artificial Intelligence Platform (AIP) and is keeping disciplined on the margins front as well, partly by optimizing headcount. Additionally, the company is seeing success with commercial expansion while the government segment remains strong, the analyst told clients. Still, citing valuation concerns, Radke reiterated his $115 price target on the Cathie Wood stock that signals potential downside of more than 15% from here. Wall Street Has a Consensus 'Hold' Rating on Palantir Investors should also note that Citi is still among the more bullish Wall Street firms on Palantir shares. The consensus rating on PLTR stock currently sits at 'Hold' only with the mean target of about $95 indicating potential downside of more than 30% from current levels.
Globe and Mail
16 hours ago
- Business
- Globe and Mail
Even $200 in These Stocks Could Mint a Fortune
After a strong market rebound since April, some of the market's most attractive artificial intelligence (AI) stocks are no longer cheap. However, that doesn't mean that they have no upside potential. In fact, for long-term investors who can tolerate short-term volatility and premium valuations, there are still a few attractive picks that can help them build wealth, especially as AI adoption has accelerated across all walks of business and life. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » You also would not need boatloads of cash to build this fortune. Even with $200 to invest today (which is not required for paying bills or contingencies), picking a stake in Palantir Technologies (NASDAQ: PLTR) and SoundHound AI (NASDAQ: SOUN) can prove to be quite brilliant. Here's why. 1. Palantir Technologies Data analytics giant Palantir has delivered an impressive financial performance in its recent first-quarter fiscal 2025 results (ending March 31), and the growth trajectory is likely to remain strong in the long run. The company's revenues jumped 39% year over year to $884 million. The growth rate is nearly double the 21% top-line growth rate achieved in the same quarter of the previous year, indicating that the company is on an accelerated growth trajectory. The U.S. commercial business has emerged as a significant growth catalyst, with year-over-year growth of 71%, crossing the $1 billion annual run rate threshold in the first quarter. Palantir also posted a Rule of 40 score of 83%, a two-percentage-point increase compared to the previous quarter. It is a critical metric for evaluating the performance of software-as-a-service (SaaS) and other high-growth technology companies, stating that the combination of revenue growth and profit margins should be at least 40%. With Palantir operating at approximately double the cutoff, it underscores the quality growth of this AI giant. The company also generated $370 million in free cash flow, demonstrating that it has sufficient funds to support its growth initiatives. Palantir differentiates itself from other AI players with its "Warp Speed" manufacturing operating system, built atop the Artificial Intelligence Platform (AIP), to streamline various industrial operations. Furthermore, instead of focusing on building newer and more advanced AI models, which eventually lose their competitive advantage, the company has developed a solid ontological framework that helps it relate the assets and relationships within an organization to its digital counterparts. This data advantage is leading to huge switching costs for customers, as replacing it becomes not only expensive but also disruptive for the overall business. Palantir trades at 208.3 times forward earnings, which is very expensive. However, profitable and practically debt-free AI companies with accelerating top-line growth and a huge $5.4 billion cash balance are not easy to come by. Hence, the stock is a smart buy for long-term investors who are ready to ride some volatility, even at elevated valuation levels. 2. SoundHound AI Amidst multiple AI stocks with unproven technologies, SoundHound AI (NASDAQ: SOUN) stands out with its voice AI platform, which is already seeing strong traction in the enterprise world. This is evident considering that the company's revenues soared a dramatic 151% year over year in the first quarter of fiscal 2025 to $29.1 million. Additionally, the company has also built a $1.2 billion backlog of cumulative subscriptions and bookings. This implies that the company has impressive revenue visibility for several more years to come. SoundHound is leveraging its multimodal and multilingual proprietary Polaris foundational model to power its conversational AI solutions. However, what makes SoundHound's technology stand out is its ability to directly process voice commands to understand the underlying meaning. On the other hand, traditional voice systems first convert the voice to text and then to a meaningful representation. This "speech-to-meaning technology" has helped dramatically reduce latency in real time, thereby making voice communications four times faster than competitors, while also improving accuracy to twice the level of competitors, even in noisy environments. The superior technology has helped the company build a sticky customer base. Although previously geared mainly toward the restaurant industry, SoundHound is now actively diversifying its customer base into healthcare, automotive, and financial services. Furthermore, no single customer accounted for more than 10% of its revenue in the first quarter. SoundHound has also been focusing on strategic acquisitions to build a comprehensive voice ecosystem. The acquisition of SYNQ3 has dramatically expanded its market reach in the restaurant industry. The Amelia acquisition has also strengthened the company's position in the massive enterprise AI market. Recently, SoundHound launched Amelia 7.0, powered by a proprietary multiprocess agentic framework called "Agentic Plus." This platform will enable businesses to deploy fleets of AI agents that can understand, reason, and autonomously complete actions. Finally, the Allset acquisition has positioned SoundHound as a key player in the voice commerce space. The company is developing technology that allows drivers to order food while driving, thereby enabling SoundHound to leverage its automotive partnerships with restaurant networks. It is indisputable that the stock looks expensive at 36.7 times sales, but that misses the bigger picture. With $245.8 million in cash and just $4.6 million in debt, SoundHound has the financial flexibility to focus on several growth initiatives. Management also expects to reach adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability by the end of 2025. Considering the company's cutting-edge conversational AI technology, robust financial trajectory, and focused inorganic growth strategy, SoundHound seems an attractive buy now. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
