From Yahoo Finance: 2025-05-03 09:10:00

Artificial intelligence has propelled Palantir’s business to new heights, with its valuation surging over 17-fold in the last two years. However, another player in the software field may have more potential over the next five years. Investors are eager to see if Palantir’s growth will continue or if it will hit a ceiling soon.

Palantir’s transformation began in April 2023 with the release of the Artificial Intelligence Platform (AIP). This move allowed the company to expand rapidly into the private sector, leading to significant growth in revenue and profit margins. Despite its success, some investors are concerned about Palantir’s skyrocketing market capitalization and high valuation multiples.

In comparison, cybersecurity firm CrowdStrike has emerged as a strong competitor with a unique positioning at the intersection of AI and cybersecurity. The company’s annual recurring revenue continues to grow, despite a security outage last year. CrowdStrike’s growth potential in the expanding AI and cybersecurity markets makes it a compelling buy-and-hold opportunity with more tailwinds compared to Palantir.

While both Palantir and CrowdStrike trade at a premium, investors are looking past CrowdStrike’s past challenges and focusing on its long-term growth potential. The company’s current P/S multiple is slightly lower than before the security outage, indicating confidence in its future prospects. CrowdStrike’s performance over the last several quarters suggests that it could become a higher-valued business by the next decade, surpassing Palantir in terms of worth.



Read more at Yahoo Finance: This Super Software Growth Stock Will Be Worth More Than Palantir by 2030