Wall Street Recommends Buying Only Palantir or Alphabet Stock
Recent analyses indicate that Wall Street is currently favoring only one stock among the leaders in artificial intelligence, namely Alphabet (GOOGL, GOOG), while cautioning against Palantir Technologies (PLTR).
Palantir Technologies: Performance Overview
Palantir has seen remarkable stock growth, soaring over 2,000% in the past three years. Despite this impressive figure, the company has a long history, operating for over 20 years.
- Market Cap: $439 billion
- Current Price: $172.20
- Today’s Change: -6.50% ($-11.97)
- Day’s Range: $170.77 – $182.70
- 52-week Range: $58.53 – $207.52
- Volume: 2.1 million
- Average Volume: 63 million
- Gross Margin: 80.81%
- Dividend Yield: N/A
Initially reliant on government contracts, Palantir diversified its growth with the launch of its AI-driven software, known as the Artificial Intelligence Platform (AIP). This transformation has propelled commercial revenue to exceed government revenue for four consecutive quarters.
Palantir continues to exhibit double-digit growth in both sectors, allowing the company to revise its annual forecasts positively. However, analysts maintain a “hold” recommendation for Palantir stock, predicting a decline of around 4% over the next year.
Alphabet: Strong Momentum
Alphabet remains best known for Google Search, commanding over 90% of the search engine market. The company’s advertising revenue has been a pillar of its earnings performance, recently enhanced by the growth of Google Cloud services thanks to AI advancements.
- Market Cap: $3.46 trillion
- Current Price: $278.57
- Today’s Change: -2.84% ($-8.14)
- Day’s Range: $277.24 – $282.84
- 52-week Range: $140.53 – $292.00
- Volume: 29 million
- Average Volume: 33 million
- Gross Margin: 59.18%
- Dividend Yield: 0.00%
Google Cloud revenue surged by 34%, exceeding $15 billion in the latest quarter, contributing to overall revenue surpassing $100 billion for the first time. Analysts remain optimistic about Alphabet’s growth prospects, with an expected stock increase of approximately 6% over the next year. Most analysts hold a “buy” or “strong buy” recommendation for Alphabet shares.
Investment Considerations
While Palantir has strong fundamentals and a significant market presence, its high valuation causes concern among analysts. This suggests that investors may prefer Alphabet, particularly those seeking stability and growth in the AI market.
In summary, Wall Street’s current recommendations highlight a clear preference for Alphabet as a desirable investment in the AI sector, while Palantir remains a riskier choice better suited for aggressive growth investors.
