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Meet the monster stock that continues to take over the market

The stock market as a whole has had several successes so far this year. The S&P 500 stormed into 2024, confirming its presence in a bull market starting in January. Then the index reached several record highs – and today it is heading for an annual gain of 25%. This is after last year’s 24% increase, making these two very successful years for investors.

What’s more, some high-quality stocks have even beaten the market and posted triple-digit gains – and one of these stocks in particular has caught investors’ attention lately. Although earnings have been strong, analysts are concerned about its high valuation, with Wall Street’s average price forecast even calling for a 48% decline over the next 12 months. But given these concerns, the stock is marching on and is currently on track for a gain of more than 200% this year.

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Let’s get to know 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 company that has been around for about 20 years, but whose profits and stock performance have only really taken off in the last few years. The software-as-a-service (SaaS) company helps its customers aggregate all of their data and use it to make important business decisions – and these can often be game-changing.

Governments have been Palantir’s largest customers for years, but recently a new, rapidly growing customer has been added: the commercial customer. In recent quarters, revenue growth from commercial customers has even exceeded that from government customers – U.S. commercial sales rose 54% year-over-year in the most recent quarter, compared to a 40% increase in U.S. government sales.

Commercial customers are flocking to Palantir because of Palantir’s latest innovation, the Artificial Intelligence Platform (AIP). Launched last year, AIP harnesses the power of AI by bringing together a customer’s data, guiding them to key insights and helping them make better decisions, faster. For example, Cleveland Clinic uses AIP to optimize patient placement Wendy’s uses the platform to improve supply chain management.

Palantir’s U.S. commercial customer count increased 77% to 321 in the quarter, compared to just 14 U.S. commercial customers just four years ago. And the size of its deals has also increased significantly, with the company signing 104 deals worth more than $1 million.

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