Prediction: 2 Unstoppable Growth Stocks That Will Be Worth More Than Palantir 1 Year From Now

Core Viewpoint - Palantir has experienced significant stock price growth, but its valuation may be unsustainable as competitors like ServiceNow and Uber are expected to surpass its market cap within a year [1][2][7]. Palantir's Financial Performance - Palantir's revenue increased by 50% from 2022 to 2024, with U.S. commercial revenue more than doubling [4]. - The company anticipates a further 34% revenue growth this year, driven by its AI Platform [4]. - Adjusted operating margin improved from 24% in Q1 2023 to 44% in the last quarter, leading to profitability on a GAAP basis and inclusion in the S&P 500 [5]. Valuation Concerns - Palantir's stock trades at an enterprise value over 70 times its expected 2025 sales, with a forward price-to-earnings (PE) ratio exceeding 200, indicating a potentially inflated valuation [6]. - Any negative news or disappointing earnings could lead to a significant drop in Palantir's stock price [7]. ServiceNow's Growth Potential - ServiceNow has a strong land-and-expand strategy, achieving a 98% customer renewal rate [8]. - The company introduced generative AI capabilities, with over $250 million in annual contract value tied to its Now Assist AI product, expected to exceed$1 billion by next year [9]. - ServiceNow projects subscription revenue growth from $10.6 billion last year to over$15 billion next year, with an addressable market potential exceeding $30 billion [10]. Uber's Strategic Position - Uber is positioning itself as a partner for autonomous vehicles (AVs), launching partnerships to deploy AVs in select cities [13]. - The company has a network of over 170 million riders, providing a strategic advantage in forming partnerships with AV companies [14]. - Uber's adjusted EBITDA margin expanded to 16.2$2.25 billion, up 66% year over year [15]. Valuation Comparison - Uber trades at an enterprise value of approximately 3.5 times 2025 sales estimates, making it a more attractive valuation compared to Palantir [16]. - With a forward PE of about 29 and earnings growth of nearly 30% per year, Uber could be valued at around $225 billion by next year [17].