Palantir and Reddit stocks show significant price increases

Palantir Technologies and Reddit are two technology stocks that have seen significant price increases over the past year. Palantir’s shares rose more than 250% by March 20, while Reddit’s stock climbed from a low of $37.35 to a high of $230.41. However, both stocks have faced recent declines due to economic uncertainty and market volatility, particularly surrounding tariffs from Donald Trump. This has led to lower prices for both companies compared to their highs earlier in the year. Palantir is leveraging its artificial intelligence (AI) capabilities to drive growth. The company reported a 29% revenue increase for 2024, totaling $2.9 billion. Palantir's AI Platform (AIP) helps clients implement AI quickly and effectively. The company also launched a new product, Warp Speed, aimed at the manufacturing sector. Reddit has experienced strong user growth, with daily users increasing by 39%, reaching 101.7 million by the end of 2024. The platform’s revenue also surged, reaching $1.3 billion, a 62% increase from the previous year. Despite a yearly net loss due to IPO costs, its profitability improved in the fourth quarter with a gross margin of 90.5%. Looking ahead, both companies expect revenue growth in 2025. Palantir estimates at least $858 million for Q1, while Reddit anticipates Q1 sales between $360 million and $370 million. When comparing valuations, Reddit's forward price-to-earnings (P/E) ratio is 36, lower than Palantir's 156. This suggests that Reddit represents better value at the moment. While both companies are performing well, if investors must choose one, Reddit may be the preferable option based on its valuation.