Palantir and Reddit Stocks Surge Amid Market Volatility

Tech stocks like Palantir Technologies and Reddit have experienced significant price growth over the last year. However, current market volatility presents challenges. Investors should closely monitor this developing situation.

Date: 25-03-2025

AI Rating: 7

Earnings and Revenue Growth: Palantir and Reddit both display strong revenue metrics. Palantir ended 2024 with $2.9 billion in revenue, a 29% increase from 2023. Similarly, Reddit surpassed $1 billion in revenue with $1.3 billion, reflecting a remarkable 62% growth from the previous year.

Net Income: In terms of profitability, Palantir reported a net income of $468 million in 2024, up from $217 million in 2023. Reddit also saw improvements, with net income in Q4 reaching $71 million, up from $18.5 million the prior year. However, Reddit’s full-year net loss was $484.3 million due to IPO costs.

Profit Margins: Both companies maintain high-profit margins, with Palantir achieving a gross margin of 80% and Reddit at 90.5%.

Market Conditions: Despite their strong financial performances, both companies have experienced price declines, driven by uncertainty in the U.S. economy and Donald Trump's tariffs affecting market volatility.

With anticipated future sales growth—Palantir predicting $858 million in Q1 revenue (a 35% increase) and Reddit projecting 48% growth in its Q1 sales—investors may find opportunities despite current market fluctuations. The recent declines in forward P/E ratios also suggest a purchasing opportunity, as Reddit's valuation appears more attractive compared to Palantir.

Stocks: PLTR RDDT