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Palantir and Snowflake, two major data stocks, are investing heavily in the AI market. Over the last twelve months, Palantir’s stock has skyrocketed over 500%, while Snowflake has seen a growth of about 52%. Their revenue growth rates differ, with Palantir achieving a 39.3% increase in its latest quarter, compared to Snowflake’s 27.4% growth.
In terms of profitability, Palantir reported a net income of $571 million with an 18.3% net income margin, contrasted with Snowflake’s loss of $1.3 billion and a -35.5% net income margin. Both companies maintain strong balance sheets, with Palantir’s debt at $245 million and a market cap of $310 billion, yielding a Debt-to-Equity Ratio of 0.1%. Snowflake has a debt of $2.7 billion and a market cap of $70 billion, resulting in a Debt-to-Equity Ratio of 3.9%.
Despite recent volatility, Palantir has demonstrated stronger recovery from market downturns than Snowflake. Valuation metrics further distinguish the two, with Palantir’s P/S ratio at 93.4 compared to Snowflake’s 18.9. Analysts suggest that while Snowflake faces challenges with cooling growth, it may present a more favorable risk-reward balance at present.
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