Title: Consider Buying This Potential Millionaire-Maker Stock Instead of Palantir
Wall Street's newest obsession, Palantir (PLTR -1.74%), has skyrocketed over 300% in 2024, earning a spot as one of the market's top performers. Investors are left wondering if it's the ideal AI stock to invest in at this moment. While Palantir shines bright, there's another AI firm that steals the spotlight – SoundHound AI (SOUN -5.53%). But could SoundHound outperform Palantir? Let's dive in.
SoundHound AI: A More Likely Millionaire Maker?
Achieving millionaire status with either stock necessitates substantial growth – SoundHound might be more feasible. To turn $10,000 into a million, SoundHound AI would need to become a $375 billion company. While Palantir would need to reach a staggering $15.9 trillion to achieve the same goal, currently a feat only achieved by the largest companies like Apple.
The Competition: Palantir vs. SoundHound AI
Both Palantir and SoundHound AI are heavyweights in the AI realm. Palantir constructs bespoke AI programs that businesses can deploy, empowering decision-makers with real-time data. It's additionally working on integrating generative AI into workflows, making AI more integrated within operations.
SoundHound focuses on AI's audio aspects, enabling sectors like automotive, restaurants, and finance services to automate tasks usually handled by humans. SoundHound is still in the beginnings of implementing this technology, but boasts a diversified business with no client accounting for over 12% of revenue.
SoundHound outperforms Palantir in terms of growth – Q3 2024 saw SoundHound's revenue skyrocket by 89% compared to the previous year, reaching $25.1 million. Projections for 2025 are even more promising, as SoundHound anticipates its revenue to double in size. Palantir, while performing well, falls behind in growth with a 30% year-over-year revenue increase to $726 million in Q3. Analysts expect Palantir's revenue to grow by 24% in 2025.
However, both stocks trade at sky-high valuations, as the market values their potential highly. With Palantir trading at 64.5 times sales and SoundHound at 40.5 times sales, it's easy to see that investors hold high hopes for these technology titans.
The High-Valued Battleground: Palantir And SoundHound AI
Palantir trades at a lower P/S ratio than SoundHound AI, indicating potential value for investors. Yet, it's a mystery why Palantir, despite growing at a slower rate than SoundHound, still commands a 50% higher premium. If both firms meet Wall Street's 2025 projected sales figures, SoundHound would trade at 20 times sales – a reasonable valuation. On the other hand, Palantir's valuation still remains unreasonably high at 46.5 times sales.
In Summary: SoundHound AI Wins The AI Stock Battle
While SoundHound AI packs more risk than other stocks, it tops Palantir in terms of growth, profitability, and valuation. Palantir's financial performance and growth projections provide a strong foundation for long-term investment, but SoundHound's impressive growth and lower valuation make it the more appealing choice.
Given the text, here are the two sentences that contain the words 'finance', 'investing', and 'money':
- Investors are left wondering if Palantir is the ideal AI stock to invest in at this moment, considering its impressive performance in the finance market.
- To turn $10,000 into a million, SoundHound AI would need to become a $375 billion company, which is a significant investment in the finance sector.
