The Battle of Titans Unfolds
Meta Platforms, Inc. and Palantir Technologies, Inc. are the stars in the artificial intelligence constellation, displaying meteoric rises since the early days of September. While Meta stands at a record zenith, Palantir, despite a formidable sprint, is yet to touch its pinnacle from January 2021.
Meta Eclipses Palantir
Meta has notched up over 68% gains year-to-date, but Palantir boasts a more impressive 133% surge. The brainchild of Peter Thiel has climbed to the fourth pedestal among S&P 500 entities for its stellar show this year, eclipsing the renown of Meta, born from the genius of Mark Zuckerberg, that currently graces the 11th spot on the leaderboard.
As illustrated, both stocks have trounced the wider market, notably the SPDR S&P 500 ETF Trust, an ETF shadowing the S&P 500 Index’s moves.
Valuations for these stocks have now vaulted post the recent climb. Palantir’s forward price-earnings ratio looms at an imposing 95.2, juxtaposed with Meta’s more conservative 24.75. Meta’s P/E ratio now mirrors the communications services sector at 21.3.
The Palantir Spectacle
Palantir’s ascent began after a soaring leap on September 9, following the announcement by S&P Dow Jones Indices of its inclusion in the illustrious S&P 500 Index, effective before trading on September 23. Wedbush analyst Daniel Ives voiced, “The profitability profile of this story has significantly been bolstered with this another validation moment for the Palantir story.”
Though initial excitement waned post the inclusion event, the tides turned, propelling the stock steadily upwards with the dawn of October.
Meta’s Investors’ Odyssey
Meta survived the storm following a broader market downturn in early August fueled by yen carry-trade liquidation, gradually ascending until mid-August, where a slight dip occurred. The Meta Connect conference on September 25-26 revealed a treasure trove of products, including AI-infused chatbots, revamped Llama models, upgraded Ray-Ban smart glasses, the MetaQuest 4 VR headset, and the Orion AR glasses. Meta’s stocks have danced northward since the announcement.
Analysts foresee a marginal upside for Meta, whereas Palantir grapples with anticipated downside pressure.
Strategic Forecast
| Current Price | 1-Year Average Analysts’ Price Target | Upside/Downside Potential | |
| Meta | $595.94 | $608.20 | +2.06% |
| Palantir | $40.01 | $27.67 | (-30.84%) |
Meta awaits a potential catalyst in its upcoming third-quarter results slated for October 30, with a consensus predicting over 30% growth in earnings per share and nearly 20% in revenue growth. Meta’s future hinges considerably on ad spend, influenced by macroeconomic nuances. The signals of a dovish stance by the Fed in the forthcoming months could spell relaxed credit conditions, favoring Meta’s prospects.
Palantir remains a retail darling amidst deal windfalls. A continued flow of transactions, robust third-quarter figures, and a promising outlook for the last quarter might keep the bullish momentum intact.
Entering a traditionally buoyant market quarter, there’s wiggle room for further enhancements despite stretched valuations. However, geopolitical and macroeconomic barricades loom given the concurrent wars and a potential hard-landing scenario.