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Zacks Investment Ideas feature highlights: Palantir and Meta Platforms
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For Immediate Release
Chicago, IL – August 12, 2024 – Today, Zacks Investment Ideas feature highlights Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report) .
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 and Meta Platforms, 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.
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.
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.
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.
Bottom Line
While companies continue to seemingly throw around the AI buzzword in their quarterly releases, several, including Palantir and Meta Platforms, are actually benefitting from AI, with the trends expected to continue.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Palantir and Meta Platforms
For Immediate Release
Chicago, IL – August 12, 2024 – Today, Zacks Investment Ideas feature highlights Palantir (PLTR - Free Report) and Meta Platforms (META - Free Report) .
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 and Meta Platforms, 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.
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.
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.
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.
Bottom Line
While companies continue to seemingly throw around the AI buzzword in their quarterly releases, several, including Palantir and Meta Platforms, are actually benefitting from AI, with the trends expected to continue.
Why Haven't You Looked at Zacks' Top Stocks
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.