Palantir Technologies’ impressive stock performance is a success story for investors in recent years. The company’s Artificial Intelligence Platform has been instrumental in its resurgence, and similar AI-focused companies are gaining traction.
Two stocks to consider are C3.ai and BigBear.ai. Both offer AI-based solutions to enterprise customers and benefit from the increasing demand for AI enterprise software. C3.ai is reported to have accelerating revenue growth and a diversified portfolio, making it an attractive option. Its generative AI platform has gained significant traction, and its margins are improving.
On the other hand, BigBear.ai’s revenue growth has been more erratic, and its gross margin is lower than expected for a SaaS company. However, its operating costs are relatively low, and it has reported a GAAP operating loss of $10.5 million in the third quarter.
While both stocks have potential, C3.ai appears to be the better buy due to its strong revenue growth, diversification, and improving margins. However, investors should consider that C3.ai is still a high-risk stock given its lack of profitability. Before investing $1,000 in C3.ai, it’s essential to review The Motley Fool Stock Advisor analyst team’s recommendations and consider other options.
C3.ai’s price-to-sales ratio of around 12 makes it significantly cheaper than Palantir, although Palantir is now solidly profitable. With accelerating revenue growth and diversification, C3.ai has a better chance to outperform and deliver multibagging gains. However, investors should exercise caution due to its lack of profitability.
Source: https://www.nasdaq.com/articles/these-2-ai-stocks-are-vying-be-next-palantir-are-either-them-buys