Palantir Technologies (NYSE:PLTR) and Salesforce (NYSE:CRM) are both prominent players in the tech industry, but how do their recent performances and future prospects compare? This analysis delves into their latest earnings, stock valuations, and analyst ratings to provide a comparative overview for investors.
Palantir Technologies (NYSE:PLTR) Stock Analysis
Palantir’s first-quarter earnings revealed a 40% year-over-year growth in its Commercial division, generating $150 million in revenue. While still substantial, this growth rate marks a decrease from the impressive 70% recorded in the previous quarter. This deceleration in commercial growth is a point investors should note when considering Nyse:pltr Compare metrics.
However, a more compelling metric for Palantir might be its total contract value, which surged by 131% year-over-year, exceeding the fourth quarter’s 107% increase. This suggests strong future revenue potential despite the slowing commercial growth rate. While Palantir shows long-term promise, the current stock valuation might warrant a more cautious approach until a more favorable entry point emerges.
Palantir (PLTR) Stock Price Target
According to analyst consensus, Palantir Technologies holds a “Hold” rating, based on a combination of ratings over the last three months: two “Buy,” seven “Hold,” and three “Sell.” The average Palantir Technologies stock price target is $22.11. Considering the recent trading price, this target suggests a modest upside potential of approximately 2.9%.
Salesforce (NYSE:CRM) Stock Analysis
Salesforce (NYSE:CRM), after its recent earnings release and subsequent stock price decline, presents a different picture. With a GAAP P/E ratio of around 41x, Salesforce appears more reasonably valued compared to Palantir Technologies. The post-earnings sell-off might be an overreaction, especially considering Salesforce’s established market presence and long-term track record. This dip could represent a bullish opportunity for investors looking at NYSE:CRM compare scenarios.
Salesforce’s stock experienced a significant drop after its first revenue miss since 2006. Despite this revenue miss, Salesforce reported adjusted earnings of $2.44 per share on $9.13 billion in revenue, slightly surpassing expectations of $2.37 per share. However, the company’s guidance for the current quarter fell short of analyst expectations, contributing to investor concerns.
Despite the disappointing guidance, Salesforce’s earnings report contained positive aspects. The company’s GAAP net income significantly increased to $1.53 billion, or $1.56 per share, from $199 million in the same quarter last year. Furthermore, Salesforce raised its full-year earnings guidance, indicating continued profitability and growth despite short-term revenue headwinds.
Salesforce (CRM) Stock Price Target
Salesforce currently has a “Moderate Buy” consensus rating, based on 21 “Buy,” eight “Hold,” and zero “Sell” ratings from analysts in the last three months. The average Salesforce stock price target is $296.89. Based on the recent stock price, this target implies a substantial upside potential of 31%.
Conclusion: NYSE:PLTR Compare – Neutral vs. Bullish
In conclusion, comparing NYSE:PLTR and NYSE:CRM reveals distinct investment propositions. Salesforce’s recent stock decline, triggered by a revenue miss, may be a temporary setback for a fundamentally strong company. Its long-term performance and increased profitability suggest a potential “buy-the-dip” opportunity for investors.
On the other hand, Palantir Technologies, while exhibiting strong growth in contract value, appears currently overvalued. While Palantir holds long-term appeal, a more attractive entry price might be preferable before considering adding it to a portfolio. Therefore, the outlook is neutral on PLTR and bullish on CRM when considering these two tech stocks for investment.
