From Nasdaq: 2025-06-09 00:45:00

Artificial intelligence technology has been a major focus in the market, with Palantir and Snowflake standing out as high-growth software companies. Palantir stock has soared by over 500% in the past year, while Snowflake has gained about 52%. Snowflake has seen faster revenue growth historically, but Palantir’s growth is picking up due to recent contract wins.

In terms of profitability, Palantir outshines Snowflake with a strong net income margin of 18.3% compared to Snowflake’s -35.5%. Palantir also boasts a high operating cash flow margin of 42.8%, while Snowflake’s margin is 26.5%. Both companies have strong balance sheets, but Palantir has a leaner balance sheet and larger cash buffer.

Market downturn resilience is a concern for both Palantir and Snowflake, with both stocks experiencing significant drops during the 2022 inflation shock. Palantir has since fully recovered and made new highs, while Snowflake has yet to reclaim its prior peak. Both stocks remain highly sensitive to macroeconomic conditions and investor sentiment.

Valuation sets the two stocks apart, with Palantir trading at exceptionally high multiples compared to Snowflake. While Palantir’s growth rates are on the uptrend and its ties to federal spending could boost demand, Snowflake’s AI tools and data storage services present a strong case for potential growth. The risk-reward trade-off may be more favorable for Snowflake stock, making it the better pick.



Read more at Nasdaq: Pick Snowflake Stock Over Palantir?