5 Stocks Both Reddit’s WallStreetBets and Hedge Funds Love

3. Palantir Technologies Inc. (NYSE: PLTR)

Number of hedge fund holders: 32 

Palantir Technologies Inc. (NYSE: PLTR) is a software firm that specializes in big data analysis and works closely with the intelligence community in the United States. It is ranked third on our list of 10 stocks both Reddit’s WallStreetBets and hedge funds love. The stock has returned 8.8% to investors in the past year. The number of mentions of the firm on the WallStreetBets forum have been increasing in the past few days, leading to a steady increase in the share price.

On June 18, the Federal Aviation Authority in the United States awarded Palantir Technologies Inc. (NYSE: PLTR) a contract for a data analytics tool that will help the agency improve aviation safety and security around the country. 

At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 38 in the preceding quarter worth $1.9 billion. 

In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks andPalantir Technologies Inc. (NYSE: PLTR) was one of them. Here is what the fund said:

“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”