Palantir and AppLovin Show Promising Stock Upside Potential

Stock analysis reveals Palantir and AppLovin with significant upside potential. Investors may find opportunities, with Palantir's innovations and AppLovin's financial performance boosting their stock outlooks.

Date: 09-03-2025

AI Rating: 7

Impressive Stock Performance: Palantir Technologies and AppLovin have seen their shares increase significantly, by 925% and 1,910% respectively, over the past two years. Analysts are optimistic about potential future gains for both companies.

Mark Schappel from Loop Capital set a target price of $141 for Palantir, suggesting a 65% upside from the current price of $85.
Rob Sanderson, also with Loop Capital, raised his target for AppLovin to $650, indicating a 140% upside from its $270 price.

Palantir Technologies Analysis: Palantir specializes in data analytics. Its latest report showed a remarkable revenue climb of 36% to $828 million, along with non-GAAP net income rising 75% to $0.14 per diluted share.

The company's increasing customer base and growing average spending show strong demand for its platforms, indicating positive revenue growth. Notably, Palantir's management anticipates a 36% revenue growth for the upcoming quarter.

However, concerns regarding insider selling and a potential decrease in Pentagon spending have affected the stock price negatively, and the current valuation may seem high compared to expected earnings growth.

AppLovin Analysis: AppLovin's fourth-quarter financials reflected robust performance, with a 44% increase in revenue to $1.4 billion and net income rising by 253% to $0.49 per diluted share. The expansion of profit margin by 25 percentage points suggests strong operational efficiency.

Despite facing scrutiny from short-sellers regarding alleged fraudulent activities, key analyst positions view these reports as lacking merit, suggesting the sell-off presents a buying opportunity. With earnings expected to surge by 45% in 2025, the current valuation appears reasonable.

Irrational market sentiments and potential growth in AI and adtech are encouraging factors; nonetheless, investors should consider volatility and available opportunities cautiously before committing to either stock.

Stocks: PLTR APP