After a rapid rise this year, software company Palantir Technologies Inc. PLTR and bitcoin buyer MicroStrategy Incorporated MSTR secured inclusion in the Nasdaq 100. While shares of Palantir are up 369.2% this year, shares of MicroStrategy are up 476.6%.
Image source: Zacks Investment Research
The addition to the exclusive Nasdaq 100 reflects the market’s confidence in the fundamentals of Palantir and MicroStrategy. Furthermore, their stock prices will rise due to increased demand from exchange-traded funds that track the Nasdaq 100.
So, given the entry of the Nasdaq 100, one has to wonder what’s a better buy in the new year. Let’s see –
Palantir helps government and commercial customers leverage data to efficiently solve problems and make informed decisions. Demand for Palantir’s Artificial Intelligence Platform (AIP) has soared, helping the company deliver encouraging results in recent quarters.
In the last reported quarter, commercial contract revenue rose 54%, while government revenue growth rose 40%. Revenues improved as the company acquired new customers thanks to AIP’s immense popularity. Palantir also generated revenue from its existing customers, as its net dollar retention rate of 118% in the last reported quarter was up from 107% a year earlier.
Palantir’s remaining deal value improved over the previous quarter, with analysts expecting the company’s revenue to reach $2.8 billion this year, up 25% from $2.23 billion in 2023. PLTR’s earnings per share is therefore expected to increase by 31% compared to last year. with a Zacks Consensus Estimate of $0.38.
Image source: Zacks Investment Research
MicroStrategy’s aggressive investment in Bitcoin (BTC) has paid off as the world’s numero uno cryptocurrency shot from a penny in 2009 to over $100,000 recently. MicroStrategy’s decision to secure the value of its reserved assets by purchasing BTC has increased the attractiveness of its stock.
MicroStrategy shows no signs of slowing down its BTC purchases. Over the next two years, MicroStrategy plans to raise $42 billion (including debt and equity) to strengthen its BTC holdings and strengthen its position as BTC’s largest treasury company. After all, Donald Trump’s election victory has increased optimism about removing roadblocks in the digital asset sector, pushing up the price of BTC.
MicroStrategy currently owns 439,000 BTCs worth $41 billion. The company’s inclusion in the Nasdaq 100 will increase its liquidity, potentially fueling BTC’s acquisition strategy.
