If it were a competition, one company would easily win the 2024 stock market championship trophy. Excitement about artificial intelligence and its use cases has boosted shares of once-little-known software stock Palantir Technologies to its best year ever since its debut on the stock exchange in 2020. year, but the company also passed a series of milestones with ease. The company gained coveted status on the S&P 500 in September and joined the concentrated Nasdaq 100 this month. The company’s gains have been the biggest among S&P 500 stocks so far this year, with Vistra Corp. in second place with a gain of 263%. The stock fell 2% on Monday, dragging the broader market lower as investors took profits from 2024’s big winners. Since its founding in 2003, Palantir has built a reputation for its data software and analytics, helping it win major government and defense contracts. This month, the company announced an extension of its artificial intelligence contract with the U.S. Army, totaling $619 million, and its stock price rose. Drone maker Red Cat Holdings also revealed a partnership with Palantir this month. Many believe Palantir’s blowout year is just the beginning for the Denver-based company. Last month, Bank of America analyst Mariana Perez Mora said its push into government and commercial applications was still “in its early stages.” She believes the company and CEO Alex Karp are “leading the modern Knudsen movement,” referring to auto industry expert Bill Knudsen, known for expanding aircraft production Famous, aircraft production is thought to have played an integral role in America’s victory in World War II. “PLTR has demonstrated their ability to digitize businesses and battlefields from finance to missile production,” she wrote. “In a world where efficiency, innovation, security and speed are the most valuable assets, we see Palantir as an enabler and winner in this new era.” What’s certain is that even after Palantir’s impressive results , there are still some people who are skeptical. More than half of Wall Street analysts maintained a hold rating on the stock, and nearly a third maintained a sell or underweight rating, according to FactSet data. Morgan Stanley analyst Keith Weiss downgraded the stock from underweight in November and removed its price target as the firm reassessed its view. While there are signs that the company is “becoming the platform of choice at this stage of the generative AI cycle,” he believes the risk-reward looks uneven. Jefferies analyst Brent Thill last month downgraded Palantir to underperform, saying its valuation of 38 times 2025 revenue was “unsustainable.” “PLTR will no longer have easy results heading into the fourth quarter and into 2025, and we believe accelerating growth from here will be more difficult,” he said.
Winning stocks in 2024 | Real Time Headlines
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