Palantir Technologies (PLTR) went public on September 30, 2020, with mixed reviews from the investment community. However, over the past four years, the company has steadily gained traction and emerged as a leader in the artificial intelligence (AI) space.
The AI revolution in late 2022 marked a turning point for Palantir. The release of its fourth major software product, the Artificial Intelligence Platform (AIP), played a crucial role in its growth. AIP’s adoption has fueled revenue acceleration, wider profit margins, and consistent positive net income and free cash flow.
Palantir has joined an exclusive club by earning a spot in the S&P 500 earlier this year, making it the best-performing stock in the index in 2024. The company’s strategic alliances with big tech giants like Microsoft, Oracle, Amazon, and Meta Platforms have further solidified its position.
While valuation is a concern, with a price-to-sales ratio of 66, Palantir’s lucrative opportunities ahead are expected to drive future growth. Long-term investors can benefit from dollar-cost averaging into the stock over a long time horizon, despite potential sell-offs.
For those looking for a no-brainer AI opportunity, Palantir deserves a spot in your portfolio heading into next year. The company’s catalysts and strategic partnerships position it for continued success in the rapidly evolving AI landscape.
Source: https://www.fool.com/investing/2024/12/08/1-unstoppable-artificial-intelligence-ai-stock-you