In this article, we will take a look at the 15 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.
Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the “Quant King” of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns.
Although it is closed to outside investors, Jim Simons’ secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world’s wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance.
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Renaissance Technologies’ computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices.
Jim Simons of Renaissance Technologies
Our Methodology
For this list, we picked stocks from Renaissance Technologies’ 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. Roblox Corporation (NYSE:RBLX)
Renaissance Technologies Q4 Stake: $438 million
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) is a video game developer based in California. With 2.9 million developers, 6 million active experiences, and 88.9 million active users per day, Roblox Corporation (NYSE: RBLX) extends beyond the traditional definition of a video game by combining its digital currency and offering an extensive range of unique virtual experiences.
Aaron Lee, a Macquarie analyst, raised his price target for Roblox Corporation (NYSE:RBLX) shares from $76 to $80 on May 5, maintaining his rating at Outperform. The change follows Roblox’s impressive first-quarter results, which exceeded forecasts and prompted the company to raise its 2025 guidance. With a 31% increase in revenue and a 26% rise in daily active users (DAUs), Roblox recorded notable year-over-year growth, achieving over 98 million people. Additionally, the company reported a 4% rise in average bookings per DAU and a 30% increase in hours engaged, reaching 21.7 billion. As a result of these strong performances, Roblox has increased its 2025 revenue prediction from the previous estimate of $5,200 million to $5,300 million, now ranging from $5,285 million to $5,360 million.
SaltLight Capital stated the following regarding Roblox Corporation (NYSE:RBLX) in its Q3 2024 investor letter:
“Roblox Corporation (NYSE:RBLX) has firmly established itself as the dominant player in user-generated gaming within Western markets. Meanwhile, Tencent has developed a similar ecosystem in China with its WeChat Mini-games platform. Owning both gives us a unique vantage point to assess the evolving landscape of user-generated gaming platforms globally.
At its recent investor day, Roblox set an ambitious target of reaching 10% of gaming content revenue, of which it estimates the total pool is around $180bn (for context, in the last twelve months, it made $4bn in bookings).
We think this will be a challenging target, but it will be positive for the business directionally. The reason is that Roblox has spent the last three years heavily investing in re-engineering its game platform to be high fidelity, performant and widely available across platforms. They also share economics with their creators to the point now that the absolute numbers in highly engaged games are enough to support a small game studio. The result is that the quality of games has materially improved, attracting additional engagement – particularly from older users…” (Click here to read the full text)
14. Robinhood Markets, Inc. (NASDAQ:HOOD)
Renaissance Technologies Q4 Stake: $450 million
Number of Hedge Fund Holders: 79
Robinhood Markets, Inc. (NASDAQ:HOOD) is a California-based financial services company that utilizes a mobile app to offer commission-free trading of stocks, exchange-traded funds, and cryptocurrencies, as well as individual retirement plan administration.
Robinhood Markets, Inc. (NASDAQ:HOOD) reported outstanding first-quarter 2025 earnings, with revenue up 50% year-over-year and record net deposits of $18 billion. The company also experienced double-digit increases in trading volumes across every segment, including an 84% surge in stocks and record options volume. Moreover, the number of the company’s gold subscribers nearly doubled year-over-year to 3.2 million at the end of the quarter.
On May 1, MP Securities analyst Devin Ryan reiterated his Market Outperform rating and $70 price target for Robinhood Markets, Inc. (NASDAQ:HOOD), citing the company’s strong growth trajectory. Ryan stated that Robinhood’s revenue of $927 million slightly exceeded expectations by around 2%. Although expenses were somewhat higher than predicted, the increase was due to one-time transaction fees associated with the TradePMR agreement. The analyst also noted that Robinhood repurchased $322 million of its shares during the quarter and increased its share repurchase authorization by $500 million, bringing the total buyback program to $1.5 billion.
13. Carnival Corporation & plc (NYSE:CCL)
Renaissance Technologies Q4 Stake: $450.9 million
Number of Hedge Fund Holders: 56
Carnival Corporation & plc (NYSE:CCL) operates cruise ships that offer vacation experiences to destinations in North America, the UK, Germany, and other regions. The company’s segments include Cruise Support, Europe Cruise Operations, Tour and Other, and NAA Cruise Operations.
Jamie Rollo, an analyst at Morgan Stanley, updated the investment firm’s assessment of Carnival Corporation & plc (NYSE:CCL) on April 10. He upgraded the stock’s rating from Underweight to Equalweight, albeit with a lower price target of $21 compared to $25. According to Rollo’s analysis, Carnival’s risk-reward ratio has shifted, now appearing more evenly distributed between potential gains and losses. Rollo noted that the average decline in cruise stocks, including Carnival, from their year-to-date highs stands at 41%.
Carnival Corporation & plc (NYSE:CCL) posted record-breaking first-quarter 2025 results, with revenue rising 7.47% to $5.8 billion. Onboard revenues also increased by 11.1% to $2 billion, while ticket revenue increased by 5.5% to $3.83 billion.
12. Spotify Technology S.A. (NYSE:SPOT)
Renaissance Technologies Q4 Stake: $454.8 million
Number of Hedge Fund Holders: 101
Spotify Technology S.A. (NYSE: SPOT), a leader in digital music streaming, is renowned for revolutionizing the music industry. The company has transformed how music is monetized by compensating artists based on song streams, rather than traditional revenue models that rely on album sales and live performances.
On April 30, Batya Levi and other UBS analysts reiterated their Buy rating for Spotify Technology S.A. (NYSE:SPOT) stock, maintaining a price target of $680. The endorsement follows Spotify’s most recent financial report, which showed that, although revenue growth on a foreign exchange-neutral (FXN) basis slowed to 15% year-over-year, down from 17% in the previous quarter, the company’s subscriber numbers exceeded projections. Additionally, the company’s gross margins increased by about 400 basis points, lower than the 550 basis points in the previous quarter. Despite this, Spotify’s management has reaffirmed its goal of increasing gross margins by 2025, albeit at a more gradual pace with expected fluctuations throughout the year.
In the US, UK, Canada, and Australia, Spotify Technology S.A. (NYSE: SPOT) has also introduced Partner Programs that enable video podcast creators to earn money from their work in various revenue streams. As a result, creator payouts rose by a notable 300% in just one month, while the platform’s video podcast consumption grew by more than 20%.
Baron Focused Growth Fund stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its Q1 2025 investor letter:
“Spotify Technology S.A. (NYSE:SPOT) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares were up, once again attributable to another impressive beat in gross margins and a healthy increase in operating margins. Spotify has been on a path to structurally increase gross margins, aided by its high-margin artist promotions marketplace, growing contribution from podcasts, and structural investments in advertising. Users continued to grow at a double-digit pace despite price hikes. Spotify also continued to innovate on the product side, calling 2025 the “year of accelerated execution,” with priorities in improving advertising, expanding into video, developing a Super Premium tier, and taking more market share. We view Spotify as a long-term winner in music streaming with potential to reach 1 billion-plus monthly active users.”
11. NVIDIA Corporation (NASDAQ:NVDA)
Renaissance Technologies Q4 Stake: $476.9 million
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA), a world leader in networking and graphics processing, provides GPUs for the AI, gaming, HPC, and other industries. The company’s products span data centers, gaming, professional visualization, and the automotive markets.
Piper Sandler maintained its $150 price target and reiterated its Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) stock on May 5. The firm conducted a sensitivity analysis on NVIDIA’s data center revenues to assess the potential impact of a slowdown in capital expenditures. The analysis revealed that roughly 6.45% of the company’s overall data center revenue could be at risk, which could have a $0.40 impact on earnings per share.
On the other hand, amid reports that the Trump administration plans to withdraw Biden-era AI chip curbs, which could possibly alter semiconductor trade restrictions, NVIDIA Corporation (NASDAQ:NVDA) shares surged to a session high of 2.6% on May 7. According to Bloomberg, the news suggests that regulations that have caused friction between governments and major tech companies worldwide may be loosened. The planned policy shift is part of a broader initiative to reconsider chip exports from companies like NVIDIA.
10. Gilead Sciences Inc. (NASDAQ:GILD)
Renaissance Technologies Q4 Stake: $492.3 million
Number of Hedge Fund Holders: 74
Gilead Sciences, Inc. (NASDAQ:GILD), a U.S. biopharmaceutical company headquartered in Foster City, California, focuses on developing antiviral treatments for illnesses such as COVID-19, hepatitis B and C, influenza, and HIV/AIDS.
For the first quarter of 2025, Gilead Sciences, Inc. (NASDAQ:GILD) reported total product sales of $6.6 billion, a 1% decrease year-over-year. Although sales of COVID-19 treatments declined, the company’s base business, excluding Veklury (remdesivir), grew 4% year-over-year to $6.3 billion, indicating the underlying strength of its core portfolio. HIV products remained the mainstay of Gilead’s operations, accounting for $4.6 billion in sales (70% of total revenue) and increasing by 6% year-over-year.
On May 7, Gilead Sciences, Inc. (NASDAQ:GILD) announced that it would invest an additional $11 billion in the United States to strengthen its domestic manufacturing and research capabilities, becoming one of the latest companies to reveal spending plans in response to President Donald Trump’s tariff policy. According to the pharmaceutical company, the new investments will augment a $21 billion budget already set aside to support U.S. manufacturing and R&D through 2030. These expenditures will be allocated toward upgrading three existing locations, constructing three new facilities, and acquiring new technology.
ClearBridge Value Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD) in its Q1 2025 investor letter:
“Health care stocks populated our top performers for the quarter. Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) announced strong fourth-quarter earnings growth and also rose both on news that its HIV prevention treatment drug Lenacapavir had been filed for U.S. approval, with an anticipated launch scheduled for mid-2025, and on positive reception to its cirrhosis of the liver treatment Livdelzi in its first full quarter.”
9. Exelixis, Inc. (NASDAQ:EXEL)
Renaissance Technologies Q4 Stake: $509.3 million
Number of Hedge Fund Holders: 46
Exelixis, Inc. (NASDAQ:EXEL) focuses on developing targeted cancer treatments. The company specializes in molecular therapies that treat difficult-to-treat cancers by targeting particular mutations in the genome.
Exelixis, Inc. (NASDAQ:EXEL) has received FDA approval for its drug cabozantinib, also known as Cabometyx, to treat certain neuroendocrine tumors (NETs), marking the company’s sixth approval in the United States. This decision was based on the phase 3 CABINET trial, which demonstrated significant improvements in median progression-free survival for both pancreatic and extra-pancreatic NETs.
On April 17, Citizens JMP analysts maintained a Market Outperform rating on Exelixis, Inc. (NASDAQ:EXEL), with a price target of $41. Silvan Tuerkcan, the firm’s analyst, predicted that Exelixis would beat the top line, attributing this to a strong prescription model. Due to restrictions on WAC growth imposed by the Inflation Reduction Act, Exelixis, Inc. (NASDAQ:EXEL) experienced a slight 2.8% year-over-year growth. Exelixis is expected to report cabozantinib sales of $473.5 million, representing an 8% decrease from the previous quarter but a 26% increase year-over-year. The same growth and decline percentages are anticipated for net product sales.
8. Airbnb, Inc. (NASDAQ:ABNB)
Renaissance Technologies Q4 Stake: $548.6 million
Number of Hedge Fund Holders: 54
San Francisco-based Airbnb, Inc. (NASDAQ:ABNB) runs an online marketplace that links homeowners with travelers seeking accommodation.
DA Davidson reiterated its Buy rating and $155 price target for Airbnb, Inc. (NASDAQ:ABNB) on May 5. The company’s analyst, Tom White, maintained his evaluation after examining Airbnb’s 2025 first-quarter results. Although the company’s foreign exchange-neutral gross bookings and revenue growth aligned with projections, adjusted EBITDA exceeded them, despite unit growth being marginally below forecasts. Although there was some observed softness in the U.S. market, where North America accounted for 45% of Airbnb’s 2024 revenue, the analyst pointed out that the situation appeared to be more related to customers delaying decisions on longer-lead-time trips than a shift towards lower-priced options.
Moreover, the company plans to relaunch its Experiences platform and add traditional hotel inventory, which may impact its development. Airbnb’s management remains confident in its strategic positioning and long-term EBITDA margin guidance of 34.5% by FY25.
Oakmark Global Fund stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its Q1 2025 investor letter:
“Airbnb, Inc. (NASDAQ:ABNB) is an online marketplace to list, discover and book unique accommodations worldwide. The company benefits from a strong network effect between its guests and hosts. We believe there is a long growth runway as global travel is an attractive market, and alternative accommodations have been taking share. We anticipate Airbnb will drive further growth by creating more valuable services for both sides of its network. This includes the potential for paid placement, which has created significant economic value for comparable market places. In our view, management is aligned with shareholders and well qualified to lead Airbnb as the company attempts to capture these growth opportunities. Short-term concerns about the macro travel environment and declining margins stemming from growth investments allowed us to purchase shares at a discount to our estimate of business value.”
7. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Renaissance Technologies Q4 Stake: $562.6 million
Number of Hedge Fund Holders: 58
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that is involved in the discovery and development of small-molecule medications for the treatment of severe illnesses, including cystic fibrosis.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported first-quarter earnings that narrowly fell short of consensus projections, with significant underperformance in sales of its Alyftrek and Journavx medications. Despite this, the company expressed confidence in future growth by increasing the lower end of its financial guidance by $100 million.
On May 7, Bernstein analysts reiterated the $462 price target for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) while maintaining their Market Perform rating. Analyst William Pickering urged investors to exercise patience after Vertex shares experienced a notable 10% decline on May 6. Bernstein’s position suggests a cautious approach, with the firm emphasizing the significance of impending product launches and clinical trial results in determining the future trajectory of the company’s stock value.
GreensKeeper Asset Management stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q1 2025 investor letter:
“Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was our second-best performer in the quarter, +20.4%. Growing demand for its Cystic Fibrosis (CF) franchise continued to generate substantial free cash flow. Vertex remains focused on diversifying its product portfolio and recently launched two new approved therapies: Alyftrek and Journavx. Alyfrtek is an improvement to VRTX’s CF portfolio, offering a once-daily dosing regimen that is far more convenient for patients. Importantly, it covers 31 additional rare mutations of CF for which no previous treatment existed. Journavx, a non-opioid pain signal inhibitor for acute pain, is beginning to ramp up sales as physicians gain confidence in its real-world efficacy and as VRTX advances reimbursement negotiations with payors. We believe that Journavx has the potential to become a blockbuster therapy, providing significant quality-of-life improvements to patients. In addition, VRTX is developing therapies for chronic pain that utilize a similar mechanism of action—blocking selective sodium channels—to inhibit the transmission of pain signals with little off-target effects. Success would be great news for shareholders, but more importantly, offer a powerful alternative to opioids and help combat the opioid crisis.”
6. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Renaissance Technologies Q4 Stake: $567.3 million
Number of Hedge Fund Holders: 47
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty food retailer that deals in organic and natural products. The company targets health-conscious consumers by emphasizing produce, vitamins, and private-label products across its over 400 stores throughout the United States.
Sprouts Farmers Market, Inc. (NASDAQ:SFM) announced impressive financial results for the first quarter of 2025. The company’s earnings per share of $1.81 represented a 17.5% positive surprise, exceeding the $1.54 forecast. At $2.2 billion, revenue surged 19% year-over-year, in line with projections.
On May 1, Arun Sundaram, a CFRA analyst, raised the price target for Sprouts Farmers Market, Inc. (NASDAQ:SFM) from $149 to $205 and upgraded the stock from Hold to a Buy. Sundaram supported Sprouts Farmers Market’s premium valuation based on the company’s substantial margin expansion, leading comparable sales growth, and substantial potential for new store openings. The company’s comparable sales are also expected to increase further toward the end of 2025 and into 2026 with Sprouts Farmers Market’s new loyalty program launch.
RF Capital Management stated the following regarding Sprouts Farmers Market, Inc. (NASDAQ:SFM) in its Q1 2025 investor letter:
“Sprouts Farmers Market, Inc. (NASDAQ:SFM) continues to perform well and has posted strong Q1 2025 results. QoQ, SFM’s net sales, comp store sales, and diluted EPS growth increased by 18.7%, 11.7%, and 61.6%, respectively.
The high EPS growth rate may or may not be sustainable over the long term. However, SFM is currently executing at a high level. The gross and EBIT margin profile continues to improve. SFM also continues to open new stores. For FY2025, management is projecting at least 35 new stores. This is certainly doable and is actually shy of their target store count growth rate of 10%. We would like to see them hit that target, but it’s best to be prudent going forward in the current environment.
Comparable store sales growth also looks great and comes at a time when other retailers are struggling. E-commerce sales has been growing at a high rate as well. The addition of Uber Eats as a partner has certainly helped…” (Click here to read the full text)
5. VeriSign, Inc. (NASDAQ:VRSN)
Renaissance Technologies Q4 Stake: $603.3 million
Number of Hedge Fund Holders: 41
VeriSign, Inc. (NASDAQ:VRSN) is a multinational domain name registry and network infrastructure services supplier. The company remains the only registry for the .com and .net domains. Back in November 2024, VeriSign, Inc. (NASDAQ:VRSN) extended its registry agreement with the Internet Corporation for Assigned Names and Numbers (ICANN) for the .com domain. The company will continue to operate the .com registry until November 30, 2030.
VeriSign, Inc. (NASDAQ:VRSN)’s first-quarter 2025 earnings surpassed analyst expectations, coming in at $2.10 per share, compared to the projected $2.07. Revenue for the company grew 4.7% year-over-year to $402 million, just above the projected $396.52 million. Moreover, VeriSign’s net income increased from $194 million to $199 million during the same quarter last year, indicating robust operational performance. The company also introduced a quarterly cash dividend of $0.77 per share.
Looking ahead, VeriSign, Inc. (NASDAQ:VRSN) maintains a cautious outlook in the face of macroeconomic uncertainties, projecting revenue for 2025 to range between $1.635 billion and $1.650 billion. With noticeable advancements in domain registration trends, the company continues to focus on expanding its portfolio of domain names and enhancing its marketing initiatives.
4. Apple Inc. (NASDAQ:AAPL)
Renaissance Technologies Q4 Stake: $617.9 million
Number of Hedge Fund Holders: 166
A leader in technology, Apple Inc. (NASDAQ:AAPL) is renowned for its diverse range of services, including iCloud and Apple Music, as well as its flagship products: the iPhone, Mac, and Apple Watch.
Apple Inc. (NASDAQ:AAPL) recently reported fiscal second-quarter earnings that exceeded Wall Street expectations. Non-GAAP profit of $1.65 per share was 1.7% higher than the analysts’ consensus estimate, and revenue increased 5.1% year-over-year to $95.36 billion. Apple’s services revenue for the quarter came in at $26.65 billion, just below the expected $26.70 billion, despite the company’s earnings exceeding consensus estimates.
With a stable price target of $210, UBS analyst David Vogt maintained a Neutral rating of Apple Inc. (NASDAQ:AAPL) shares on May 6. According to Vogt’s analysis of Sensor Tower data, global App Store revenue grew by almost 11% on a currency-neutral basis, about 60 basis points (bps) less than in March, representing a significant slowdown from the start of the year. The App Store also faces challenging year-over-year comparisons for the remainder of the quarter ending June 2025. Historically, growth rates have been about 15% in May and 13% in June.
3. Novo Nordisk A/S (NYSE:NVO)
Renaissance Technologies Q4 Stake: $715 million
Number of Hedge Fund Holders: 64
Novo Nordisk A/S (NYSE:NVO) is a prominent global healthcare company that focuses on treating rare diseases, diabetes, and obesity. With 48,000 workers spread across more than 168 countries, Novo Nordisk is well-known for its pharmaceuticals, which include Wegovy, Rybelsus, and Ozempic.
On May 7, BofA Securities lowered its price target for Novo Nordisk A/S (NYSE:NVO) shares from DKK 910 to DKK 850, despite maintaining a buy rating on the stock. During a call with an analyst, Novo Nordisk stated that it was confident in a second-half year inflection, driven by several initiatives. The company also intends to implement a focused SG&A commercial strategy. Novo Nordisk’s guidance is predicated on the idea that Wegovy and Ozempic will both benefit from a decrease in compounded semaglutide in the second half of the year. However, BofA’s analyst pointed out that the company provided limited information about the workings of these processes, such as the effects of capture rates, brand switching, and inventory levels.
2. United Therapeutics Corporation (NASDAQ:UTHR)
Renaissance Technologies Q4 Stake: $737.2 million
Number of Hedge Fund Holders: 42
United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company that develops and manufactures organ replacements and treatments for organ disorders. The company’s three primary medications, Tyvaso, Orenitram, and Remodulin, are targeted at patients, hospitals, and specialty pharmacies.
TD Cowen reiterated its Buy rating for United Therapeutics Corporation (NASDAQ:UTHR) on May 7, citing a stable $400 price target. The endorsement follows a recent meeting with the company’s management, which took place after their earnings call for the first quarter. TD Cowen analysts stated that management discussed the ongoing introduction of Tyvaso PH-ILD and expressed confidence in the drug’s ability to treat Idiopathic Pulmonary Fibrosis (IPF), with preliminary results anticipated in the second half of the year.
United Therapeutics Corporation (NASDAQ:UTHR) exceeded market expectations with its first quarter 2025 financial performance. The company reported earnings per share of $6.63, surpassing the projected $6.53, and achieved record revenue of $794.4 million, significantly higher than the expected $728.34 million. Strong demand across its treprostinil product lines, including Tyvaso and Remodulin, contributed to a 17% year-over-year increase in revenue.
1. Palantir Technologies Inc. (NASDAQ:PLTR)
Renaissance Technologies Q4 Stake: $1.72 billion
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is a software and data analytics company that develops platforms for large corporations, financial institutions, and government organizations to analyze massive amounts of data. Its government sector serves customers from the US government and non-US government agencies, while the commercial segment oversees clients from various non-governmental industries.
On May 6, Cantor Fitzgerald raised its price target for Palantir Technologies Inc. (NASDAQ:PLTR) from $98 to $110 with a Neutral rating on the stock. This change follows Palantir’s first-quarter 2025 earnings, which beat the Visible Alpha consensus by 2.5%. The company attributed this outperformance to strong results in the U.S. commercial sector, where revenue surpassed projections by 10%, and overall government revenue, which was 5% higher than anticipated. However, Cantor Fitzgerald observed that the degree of revenue outperformance was lower compared to the prior quarter, despite the report’s positive aspects. Due to persistent challenges across Europe, international revenues, especially among the commercial sectors abroad, fell 16% short of projections.
Ithaka US Growth Strategy stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q1 2025 investor letter:
“From the front-lines of warzones to Fortune 500 enterprises, Palantir Technologies Inc. (NASDAQ:PLTR) builds software to address high-level action items, respond to defense and security concerns, and improve organizational efficiency. The company offers a number of software products from data analysis and curation (Palantir Gotham and Foundry) to a cloud-based operations software (Apollo). The company rose to popularity, in part, due to several government contracts (~55% of revenues) arising from recent and continuous global conflicts. In addition to creating generative AI defense solutions for governments across the globe, commercial customers (~45% of revenues) have flocked to the company’s security and data analysis solutions to monitor and analyze business data and protect sensitive information. The stock’s rise in the quarter was due to a strong earnings report that beat Street expectations as well as investor excitement with regard to the company’s ability to further monetize its AI product across its growing customer base.”
While we acknowledge the potential for PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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