Meet the Monster Stock That Continues to Crush the Market

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The stock market as a whole has scored several wins so far this year. The S&P 500 roared into 2024, confirming its presence in a bull market as of January. Then the index went on to reach multiple record highs — and today it’s heading for a 25% annual gain. This is after last year’s 24% increase, making these two years very successful ones for investors.

On top of this, some high-quality stocks have even beaten the market, delivering triple-digit gains — and one of these stocks in particular has attracted investors’ attention in recent times. Though earnings have been strong, analysts have worried about its high valuation, and Wall Street’s average price forecast even calls for it to fall 48% over the coming 12 months. But, against the backdrop of these concerns, the stock marches on and right now is on track for a gain of more than 200% this year.

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Let’s meet this monster stock that continues to crush the market — and consider whether it’s a buy today.

Image source: Getty Images.

So, which unstoppable stock am I talking about? Palantir Technologies (NYSE: PLTR), a tech player that’s been around for about 20 years but has seen earnings and share performance truly take off only over the past couple of years. The software-as-a-service (SaaS) company helps its customers aggregate all of their data and use it to make key business decisions — and these often can be game-changing.

For years, governments have been Palantir’s biggest customers, but in recent times, a new high-growth customer has emerged: the commercial customer. In the latest quarters, the commercial customer’s revenue growth has even surpassed that of government customers — U.S. commercial revenue surged 54% in the recent quarter year over year compared with a 40% increase for U.S. government revenue.

Commercial customers are flocking to Palantir for its latest innovation, its Artificial Intelligence Platform (AIP). Introduced last year, AIP harnesses the power of AI as it brings together a customer’s data and leads that customer to important discoveries and helps them make better decisions faster. For example, the Cleveland Clinic is using AIP to optimize patient placement, and Wendy’s is using the platform to improve supply chain management.

Palantir’s U.S. commercial customer count soared 77% to 321 in the quarter — and that compares to a U.S. commercial customer count of only 14 just four years ago. And deal size has become significant too, with the company signing 104 deals valued at more than $1 million.

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