Comparing Meta Platforms and Palantir Technologies
Meta Platforms and Palantir Technologies have been riding the AI wave with gusto since the early days of September. While Meta soars to new heights, Palantir, despite its recent surge, struggles to reclaim its peak from January 2021.
Meta has witnessed a 68% surge year-to-date, whereas Palantir boasts a more impressive 133% climb. The data analytics powerhouse co-founded by Peter Thiel holds the illustrious fourth spot in the S&P 500 ranking for 2021. Meanwhile, Meta, founded by Mark Zuckerberg, languishes at the eleventh position.
Valuations and Trends
Both stocks have outperformed the market, symbolized by the S&P 500 ETF Trust. However, their recent spikes have led to pricey valuations. Palantir currently sports a hefty forward P/E ratio of 95.2, while Meta trades at a more modest 24.75. Meta’s P/E ratio harmonizes fairly with the communications services sector at 21.3.
A Closer Look at Palantir’s Rally
Palantir’s historic surge began on Sept. 9, following its inclusion in the S&P 500 Index. Despite a brief ‘buy the rumor, sell the news’ blip, the stock has steadily ascended since the start of October. Wedbush analyst Daniel Ives remarked on the added profitability to the Palantir story following this milestone.
Meta’s Investor Engagement
Meta’s stock navigated through the broader market turmoil and surged after the Meta Connect conference held on Sept. 25-26. The conference unveiled a plethora of products like AI-driven chatbots, updated language models, smart glasses, and virtual reality headsets, propelling the stock to a sustained upward trajectory.
Future Outlook
Analysts foresee modest upside for Meta and a downside for Palantir in the near term. Meta’s upcoming third-quarter results on Oct. 30 are anticipated to show substantial earnings per share and revenue growth. Macro indicators like credit conditions may play a significant role in Meta’s performance. On the other hand, Palantir’s retail investor interest remains strong, with continued deal flow and positive guidance possibly bolstering its momentum.
| Current Price | 1-Year Avg. Analysts’ Target | Upside/Downside Potential | |
| Meta | $595.94 | $608.20 | +2.06% |
| Palantir | $40.01 | $27.67 | (-30.84%) |
Market Conditions and Prospects
The market gears up for a season of optimism, which could yield further gains despite stretched valuations. Geopolitical tensions and economic uncertainties persist, posing challenges ahead. As we stand amidst a landscape of two ongoing wars and potential financial instabilities, the path forward remains shrouded in uncertainty.