The Dow includes 30 companies, two of which are traditionally low-priced stocks with clear competitive strengths. Additionally, there is a rapidly rising stock whose impressive growth might not last.
This article on Investment Ideas features Amazon, eBay, Alibaba, JD.com, and Microsoft.
Palantir is a company that focuses on data analysis and software development, and it has seen significant growth since it went public in 2020. In the fourth quarter, the company reported an increase in the number of US customers, as well as higher revenue and earnings compared to both the previous quarter and last year, achieving new stock records. Although there was a decrease in GAAP EPS because of one-time expenses related to stock awards, Palantir's net income hit a record high, showing that the company is financially strong.
Palantir's stock jumped about 20% after it announced its Q4 results, which revealed a growth rate of 36% year-over-year, up from 30% in Q3. The company expects a 31% growth rate for FY25, which is an increase from the 29% growth projected for all of FY24. This rapid revenue growth is unusual in the software industry, where many companies are facing tighter IT budgets and longer deal closures.
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Projects are evolving from small tests and experiments to focused strategies that can be applied across entire companies. On February 5, 2025, IBM announced its yearly predictions for technology and changes in the global financial services sector in the IBM Institute for Business Value 2025 Outlook for Banking and Financial Markets.
On Wednesday, the stock prices of Amazon.com and PDD Holdings, which owns the well-known Chinese shopping app Temu, dropped. This decline happened after the U.S. Postal Service announced that it would no longer accept packages from China and Hong Kong.
Microsoft's share prices fell by 6% right after its fiscal second-quarter earnings report on January 29. Although the company reported revenue and earnings that exceeded Wall Street's predictions, investors did not feel it was enough to push the share price to new highs.
Palantir Technologies (PLTR 23.99%) had an impressive year, providing strong earnings and stock price growth for its investors. The company's quarterly revenue increased significantly, profits hit new highs, and the stock rose by 340%, making it the top performer in the S&P 500 (^GSPC 0.72%).
Palo Alto Networks has a strategy called "Platformization" that combines its products into three main platforms, which improves security, simplifies processes, and lowers costs, helping to grow its customer base. The company has a wide range of products in important cybersecurity areas, allowing it to provide complete solutions that meet various customer needs better than its rivals. The Subscription segment, led by advanced security products like Prisma and Cortex, is the main factor for growth, with platformized accounts experiencing greater annual recurring revenue growth.