Want to Double Your Money? Buy Palantir Stock on the Dip InvestorPlace - Stock Market News, Stock Advice & Trading TipsAfter releasing its quarterly report, Palantir stock went south -- for a very silly reason. But the crash has created...

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

If you're looking to double your money in the stock market — whether that's turning $1,000 into $2,000 or $10,000 into $20,000 — then I have a very simple suggestion for you: Buy Palantir (NASDAQ:PLTR) stock right now.

Palantir is a revolutionary data analytics firm that could quite literally take over the world with its tech. The company is very much like an early-stage Microsoft (NASDAQ:MSFT). Indeed, we think Palantir is today where Microsoft was back in the 1980s.

And since then, Microsoft stock has soared more than 80,000% — so that's a pretty favorable comparison.

Yet, Palantir stock was crushed last week after the company reported earnings. The market misinterpreted as "bad." The numbers were actually really good! But this misunderstanding is creating quite a compelling opportunity in Palantir stock. And if you capitalize on it, you could double your money in just a few months.

Here's the rundown.

Palantir was founded in 2003 to develop advanced software for the U.S. intelligence community. It was created with the intent to assist in counterterrorism investigations and operations. The technology that the company built in to do that is truly world-class. Indeed, it's second-to-none. According to our data science analyst — a physics major who previously created AI-powered recommendation algorithms for a Fortune 500 company — Palantir has developed game-changing tech that's miles ahead of anything else in the data and software industries today.

Palantir Stock Opportunity

Palantir is now commercializing that technology via expanded government contracts and is selling Software-as-a-Service (SaaS) solutions to corporate America.

The business is growing like wildfire. It has average revenue growth of 45% over the past eight quarters. Moreover, it expects to keep growing like wildfire. Management is guiding for 30%-plus revenue growth into 2025. And it has a huge opportunity ahead of it. The company estimates its addressable market at $100 billion, and revenues last year were just a hair over $1.5 billion.

On top of all that, the management team is stellar. They're essentially a bunch of really smart Stanford-connected folks who have teamed up with legendary VC Peter Thiel to lead this business. Likewise, the engineering team is as good as it gets — top engineering grads and former Amazon (NASDAQ:AMZN), Microsoft, and Google folks building and improving the tech every day. And the business model is highly scalable with nearly 80%-plus gross margins and is already massively EBITDA profitable. It had margins of 30% last quarter, even with ~30% revenue growth.

Why It Plummeted

The only knock? The company missed earnings estimates last week by two cents.

Oh well. Seriously, that's our response. Oh well. For a company redefining the data infrastructure underlying every government and commercial organization in the world, does a two-cent earnings-per-share miss really matter?

Nope, not at all.

What does matter, though, is that:

• The company's revenue growth rates remain very strong at ~35%, underscoring that demand for Palantir's next-gen data science tools remains as robust, even as the company scales.
• The commercial business is accelerating, with 47% revenue growth last quarter, on top of 37% growth in quarter three, 28% growth in quarter two and 19% growth in quarter one. Clearly, enterprises are hungry to try Palantir's data science platform.
• Net dollar retention rates in the commercial business clocked in at 113% last quarter, paced by a 150% net dollar retention rate among U.S. businesses. Therefore, not only are businesses increasingly utilizing Palantir's tools. But once they do adopt them, they're expanding their usage of — and spend on — those tools because they're just so game-changing.
• Management is still guiding for 30%-plus revenue growth into 2025, a mark which seems super aggressive. Yet, with every passing quarter, it seems more and more doable because Palantir's demand trends refuse to slowdown.

So if you're worried about last week's EPS miss, I get it. Actually, I don't get it because it makes no sense.

Palantir's business is firing on all cylinders right now. And the software is on track to become an enterprise software ubiquity one day — like Microsoft Word or Excel. As Palantir tech goes from niche tool to universality by 2030, the company's revenues and profits will soar.

And so will the stock.

Double Your Money

The average analyst price target on Palantir stock is $21. The Morningstar fair value estimate is $31. Our internal price target is $30. So across all the folks who run the numbers of this stock, we all think shares will at least double — and maybe even triple — over the next 12 months.

Alas, I come back to our original question: Do you want to double your money? If yes, buy Palantir stock.

That's why, in our flagship investment research advisory Innovation Investor, we told subscribers to buy the dip in Palantir stock after last week's earnings plunge.

In that research advisory, we ignore near-term stock price fluctuations, and stay focused on investing in the world's most innovative companies — with the biggest long-term growth potential.

Palantir stock falls under that umbrella. So do a few dozen other hypergrowth tech stocks with enormous upside potential at current levels – and all those stocks are in our Innovation Investor portfolio.

Gain access to that portfolio — and learn about the best tech stocks to buy today!

Spoiler alert: We're seeing some amazing buying opportunities — like Palantir stock — where you can easily double or triple your money over the next few months.

Interested? Click here to learn more.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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