We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
2 Companies Actually Benefiting from AI: PLTR, META
Read MoreHide Full Article
AI this, AI that.
We’ve heard it all from companies in their quarterly releases about the technology, with some seemingly shoving the term into their commentaries as a buzzword. But the obvious question remains – is anybody actually benefiting?
The answer is yes.
Several companies, including Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report) , are actually reaping the benefits of AI, as reflected by their quarterly results. Let’s take a closer look at each.
Palantir Reports Record Profit
Palantir’s quarterly release was filled with positivity, exceeding both earnings and revenue expectations. Revenue soared 27% year-over-year, whereas EPS climbed 200%. The company builds software that empowers organizations to effectively integrate their data, decisions, and operations.
The company’s platform continues to be highly attractive, reflected by 41% year-over-year customer growth. Impressively, PLTR closed over 27 deals worth $10 million throughout the period, further reflecting the snowballing demand.
Image Source: Zacks Investment Research
Though strength was broad, the company’s US commercial sales were notably bright, growing 55% year-over-year alongside an 83% customer increase. The CEO delivered a notably bullish statement following the print, stating –
‘In Q2 2024, we generated $159 million in revenue in the U.S. commercial market alone, an increase of 55% from the same period the year before. The growth rate was even more significant, at 70% year-over-year, when excluding strategic commercial contracts. And the persistent and unbridled demand for our software, for an effective enterprise platform that makes artificial intelligence capabilities useful to large institutions, shows no sign of relenting.’
Analysts have adjusted their current year sales expectations accordingly following the robust release, with the now $2.8 billion expected suggesting a 21% jump.
Image Source: Zacks Investment Research
The stock remains a prime selection for those seeking AI exposure, further reinforced by its favorable Zacks Rank #2 (Buy) rating.
Meta Platforms Delivers Stunning AI Statement
Mega-cap giant Meta Platforms was one of the few Mag 7 members to see a positive reaction to its quarterly results, with the company again exceeding both earnings and revenue expectations. The stock remains a favorable Zacks Rank #2 (Buy), with its earnings outlook reflecting bullishness across the board.
Image Source: Zacks Investment Research
The company delivered a stunning statement in the release, with Mark Zuckerberg saying, ‘We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year,"
He continued, "We've released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we're driving good growth across our apps."
Meta also raised its CapEx outlook into a band of $37 - $40 billion ($35 - $40 billion prior) to support its artificial intelligence roadmap.
The valuation picture for META remains attractive, with the current 21.5X forward 12-month earnings multiple in line with the five-year median and well beneath five-year highs of 31.5X. In addition, the current PEG ratio works out to 1.1X, reflecting that investors are paying a fair price for the forecasted growth.
Image Source: Zacks Investment Research
Bottom Line
While companies continue to seemingly throw around the AI buzzword in their quarterly releases, several, including Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report) , are actually benefitting from AI, with the trends expected to continue.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
2 Companies Actually Benefiting from AI: PLTR, META
AI this, AI that.
We’ve heard it all from companies in their quarterly releases about the technology, with some seemingly shoving the term into their commentaries as a buzzword. But the obvious question remains – is anybody actually benefiting?
The answer is yes.
Several companies, including Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report) , are actually reaping the benefits of AI, as reflected by their quarterly results. Let’s take a closer look at each.
Palantir Reports Record Profit
Palantir’s quarterly release was filled with positivity, exceeding both earnings and revenue expectations. Revenue soared 27% year-over-year, whereas EPS climbed 200%. The company builds software that empowers organizations to effectively integrate their data, decisions, and operations.
The company’s platform continues to be highly attractive, reflected by 41% year-over-year customer growth. Impressively, PLTR closed over 27 deals worth $10 million throughout the period, further reflecting the snowballing demand.
Image Source: Zacks Investment Research
Though strength was broad, the company’s US commercial sales were notably bright, growing 55% year-over-year alongside an 83% customer increase. The CEO delivered a notably bullish statement following the print, stating –
‘In Q2 2024, we generated $159 million in revenue in the U.S. commercial market alone, an increase of 55% from the same period the year before. The growth rate was even more significant, at 70% year-over-year, when excluding strategic commercial contracts. And the persistent and unbridled demand for our software, for an effective enterprise platform that makes artificial intelligence capabilities useful to large institutions, shows no sign of relenting.’
Analysts have adjusted their current year sales expectations accordingly following the robust release, with the now $2.8 billion expected suggesting a 21% jump.
Image Source: Zacks Investment Research
The stock remains a prime selection for those seeking AI exposure, further reinforced by its favorable Zacks Rank #2 (Buy) rating.
Meta Platforms Delivers Stunning AI Statement
Mega-cap giant Meta Platforms was one of the few Mag 7 members to see a positive reaction to its quarterly results, with the company again exceeding both earnings and revenue expectations. The stock remains a favorable Zacks Rank #2 (Buy), with its earnings outlook reflecting bullishness across the board.
Image Source: Zacks Investment Research
The company delivered a stunning statement in the release, with Mark Zuckerberg saying, ‘We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year,"
He continued, "We've released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we're driving good growth across our apps."
Meta also raised its CapEx outlook into a band of $37 - $40 billion ($35 - $40 billion prior) to support its artificial intelligence roadmap.
The valuation picture for META remains attractive, with the current 21.5X forward 12-month earnings multiple in line with the five-year median and well beneath five-year highs of 31.5X. In addition, the current PEG ratio works out to 1.1X, reflecting that investors are paying a fair price for the forecasted growth.
Image Source: Zacks Investment Research
Bottom Line
While companies continue to seemingly throw around the AI buzzword in their quarterly releases, several, including Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report) , are actually benefitting from AI, with the trends expected to continue.