DraftKings and Palantir: Growth Stocks Worth Considering Now

A recent report discusses two enticing growth stocks, DraftKings and Palantir Technologies, both positioned for substantial market influence and profitability. Their evolving landscapes and market expansions present compelling opportunities for investors looking to capitalize on emerging trends.

Date: 22-09-2024

AI Rating: 7

The report highlights two promising growth stocks: DraftKings and Palantir Technologies, both of which are capitalizing on rapidly expanding markets.

DraftKings is firmly entrenched in the burgeoning sports betting industry, with its revenue increasing by 26% year-over-year, reaching $1.1 billion in the second quarter. The company is benefitting from the legalization trend in various states, alongside its international expansion. The report indicates that:

DraftKings' number of monthly unique payers surged by 50% to 3.1 million.
Management projects an adjusted EBITDA of up to $1 billion in 2025, significantly up from a projected $420 million in 2024.

This is an encouraging sign for investors, as rising profitability and a recent $1 billion share repurchase program suggest confidence from leadership in the company’s future.

On the other hand, Palantir Technologies is benefiting from the AI surge, reporting a 27% revenue increase and an 80% rise in adjusted earnings per share, reaching $678 million and $0.09, respectively. The demand for its analytics solutions, especially in government contracting, is strong:

The Department of Defense is licensing Palantir's systems, with potential revenue of up to $480 million.
Palantir also boasts a substantial cash reserve of $4 billion, establishing a strong financial foundation.

Moreover, being added to the S&P 500 index highlights Palantir's growing market credibility and potential attractiveness to institutional investors.

Stocks: NASDAQ:DKNG NYSE:PLTR