From Nasdaq: 2024-05-29 16:00:00

Artificial intelligence is a major player in the stock market, with technology stocks soaring by 43% in 2023. The “Magnificent Seven” tech companies led the charge, but opportunities are emerging outside of big tech. Palantir Technologies saw shares rise by 167% last year, but dropped by 18% after their first-quarter earnings report. Investors are left wondering if this is a buying opportunity.

The release of Palantir’s Artificial Intelligence Platform (AIP) sparked new customer acquisitions and revenue growth. Despite the drop in stock price, the company’s revenue increased by 21% year over year to $634 million. Palantir also expanded its operating margin from 24% to 36%, showing positive net income and free cash flow. Investors are questioning whether now is the right time to invest in Palantir stock.

At a P/S ratio of 20.7, Palantir stock trades at a premium compared to peers. Despite this, the company has made significant progress over the last year and represents a unique opportunity among high-growth AI software businesses. The Motley Fool Stock Advisor team identified Palantir as one of the top 10 stocks to buy, showcasing its potential for significant returns in the coming years. Investing in Palantir could offer long-term growth prospects for investors.



Read more at Nasdaq: Palantir Stock Is Cratering, but the Reason Why May Surprise You (Hint: It’s Not Because of Artificial Intelligence Competition)