Palantir Technologies (NASDAQ: PLTR) has seen exponential growth since going public five years ago, with its stock soaring from $10 to almost $180. Annual revenue spiked from $1.1 billion in 2020 to $2.9 billion in 2024, driven by government contracts and commercial expansion.

Despite its success, Palantir’s sky-high valuation of over 300 times next year’s earnings raises concerns. As a meme stock, its market cap of $423 billion at 75 times next year’s sales may not be sustainable. Investors are advised to consider other less popular stocks like Alibaba (NYSE: BABA).

Alibaba, China’s e-commerce and cloud giant, faces challenges like antitrust fines and COVID restrictions, leading to a 50% drop in its stock value. However, its stabilizing business and overseas marketplace expansions position it for potential growth compared to Palantir.

Analysts project Alibaba’s revenue and EPS to grow at a slower but steadier rate from fiscal 2025 to 2028. With a more reasonable valuation and potential easing of US-China tensions, Alibaba could see a significant increase in market cap, making it a more reliable investment compared to Palantir.

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Read more at Nasdaq: Prediction: 1 Stock That Will Be Worth More Than Palantir 1 Year From Now