Better Artificial Intelligence (AI) Stock: Palantir Technologies vs. Snowflake

Like
Comment
Favorite

Better Artificial Intelligence (AI) Stock: Palantir Technologies vs. Snowflake

Motley Fool10-08

Palantir and Snowflake are trendy vendors for organizations deploying AI. The companies are similar in size but trending in opposite directions financially. There is a clear winner, but ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

No comments yet

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2473244593?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F793114%2Fartificial-intelligence-idea.jpg&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-10-08 17:25","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2473244593","market":"us","top_or_hot":-1,"title":"Better Artificial Intelligence (AI) Stock: Palantir Technologies vs. Snowflake","media":"Motley Fool","content":"<div>\n<p>Palantir and Snowflake are trendy vendors for organizations deploying AI.\n\n\n\n\n\n\n\nThe companies are similar in size but trending in opposite directions financially.\n\n\n\n\n\n\n\nThere is a clear winner, but ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/10/08/artificial-intelligence-ai-palantir-snowflake/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Better Artificial Intelligence (AI) Stock: Palantir Technologies vs. Snowflake</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBetter Artificial Intelligence (AI) Stock: Palantir Technologies vs. Snowflake\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-08 17:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/10/08/artificial-intelligence-ai-palantir-snowflake/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir and Snowflake are trendy vendors for organizations deploying AI.\n\n\n\n\n\n\n\nThe companies are similar in size but trending in opposite directions financially.\n\n\n\n\n\n\n\nThere is a clear winner, but ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/10/08/artificial-intelligence-ai-palantir-snowflake/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0109392836.USD","symbol_name":"富兰克林科技股A","start_time":0,"source_url":"https://www.fool.com/investing/2024/10/08/artificial-intelligence-ai-palantir-snowflake/","article_id":"2473244593","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F793114%2Fartificial-intelligence-idea.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2473244593","pubTimestamp":1728379500,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"These two companies are central to modern data technology, the epicenter of artificial intelligence.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0109392836.USD":"富兰克林科技股A","BK4116":"互联网服务与基础架构","BK4099":"汽车制造商","BK4548":"巴美列捷福持仓","BK4528":"SaaS概念","AI":"C3.ai, Inc.","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","AIP":"Arteris, Inc.","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","BK4587":"ChatGPT概念","BK4523":"印度概念","BK4097":"系统软件","BK4585":"ETF&股票定投概念","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","BK4023":"应用软件","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","BK4535":"淡马锡持仓","BK4543":"AI","BK4559":"巴菲特持仓","BK4588":"碎股","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","PLTR":"Palantir Technologies Inc.","BK4581":"高盛持仓","BK4503":"景林资产持仓","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","SNOW":"Snowflake","TTM":"塔塔汽车","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","BK4551":"寇图资本持仓","BK4547":"WSB热门概念","BK4505":"高瓴资本持仓"},"translate_title":"更好的人工智能(AI)股票：Palantir Technologies与Snowflake","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AIP":1,"TTM":1,"SNOW":1,"PLTR":1,"AI":1},"content_text":"Palantir and Snowflake are trendy vendors for organizations deploying AI.\n\n\n\n\n\n\n\nThe companies are similar in size but trending in opposite directions financially.\n\n\n\n\n\n\n\nThere is a clear winner, but it comes with a lofty price tag.\n\nData is at the core of artificial intelligence (AI) technology. AI helps people understand and analyze data like never before, and these powerful models depend on data to learn and train. Two hot data stocks stand at the forefront of AI: Palantir Technologies (PLTR -2.80%) and Snowflake (SNOW -0.79%).They are both proving integral to deploying AI, whether on the front end with applications or the back end with data warehousing and querying.However, these two stocks have moved in different directions. Palantir has been a Wall Street sensation, while Snowflake has steadily declined after a red-hot initial public offering. Which is the better AI stock to buy today?Mission-critical AI softwareBoth companies' products are essential to deploying AI because most organizations lack the developmental chops to build their AI applications or, at the very least, don't have well-structured data to integrate into the applications.Palantir builds custom software applications for companies and governments to deploy AI and data analytics technology. The company has worked with the U.S. government for years and has increasingly expanded into the private sector with commercial applications ranging from manufacturing supply chains to operating large hospitals. Palantir's revenue growth has accelerated since last summer after it launched its artificial intelligence platform (AIP) for deploying AI applications.Snowflake is a cloud-based data warehousing platform enabling companies to store, organize, and query their data securely. The company currently works with 736 of the Forbes Global 2000. Its cloud-neutral platform works across the primary cloud vendors, giving customers valuable flexibility versus locking in with one platform. Snowflake's billing is usage-based, so it can grow as companies create and query more data. The company sports a robust 127% net revenue retention rate.Financials are trending in opposite directionsSnowflake and Palantir are similar-sized businesses today. Over the past four quarters, Snowflake generated $3.2 billion in revenue and $815 million in free cash flow, compared to Palantir's $2.5 billion in revenue and $696 million in free cash flow. But it's become evident that these two companies are moving in opposite directions.You can see that Snowflake's revenue growth rate is slowing while Palantir's has accelerated since last summer:SNOW Operating Revenue (Quarterly YoY Growth) data by YChartsThe two companies are also miles apart in bottom-line profitability. Snowflake is generating a lot of free cash flow by issuing stock-based compensation. When you factor everything in by looking at generally accepted accounting principles (GAAP) income, Snowflake has lost over $1 billion over the past four quarters. Meanwhile, Palantir is also GAAP profitable, and net income is growing:SNOW Net Income (TTM) data by YChartsSnowflake isn't in any financial trouble. The company is cash-flow-positive and has over $3 billion in cash and zero debt on its balance sheet. Still, the steep GAAP losses are concerning because they raise the question of how much dilution investors must endure. Stock-based compensation increases the share count and decreases the value of existing shares because they represent a smaller share of the company.Which is the better AI stock?Palantir's accelerating revenue growth and ample profits make it the clear winner over Snowflake. It's the better AI stock until Snowflake stabilizes its revenue growth and shows a better path to GAAP profits.The market knows how these two companies are performing -- Palantir stock has soared 154% over the past year, while Snowflake stock has declined 24%.Unfortunately, Palantir's success has inflated the stock's valuation to bubble-like levels. Today, Palantir trades at a price-to-sales (P/S) ratio of 38, higher than during most of 2021, when the market was in an Everything Bubble due to zero-percent interest rates. It's among the highest you'll find on the market today.A great company can still be a lousy investment if you pay too much for it, so investors should think hard about buying the stock at these prices. Maintaining such high valuations is hard without meeting increasingly higher expectations. There is a high chance that this comes back to bite the stock at the first sign of adversity or broader market volatility. Meanwhile, Snowflake trades at a much more reasonable P/S ratio of 12. It might even be the better buy today if you believe Snowflake will improve in the future. If not, try to exercise patience and wait for a better price to buy Palantir.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}