Is Palantir Technologies Inc. (PLTR) the Best Long Term Growth Stock to Buy According to Billionaires?

We recently published a list of 10 Best Long Term Growth Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other best long term growth stocks to buy according to billionaires.

As per Barclays, the US administration announced numerous executive orders with reforms associated with world trade, immigration, and global geopolitics, resulting in elevated levels of uncertainty and volatility, with markets witnessing a range of policy changes. The firm’s research analysts opine that higher uncertainty comes at a cost to global growth. In the US, there has been a decline in consumer confidence, while personal spending remains weak, and GDP forecasts declined sharply, says the firm.

What’s Ahead for US Economy?

S&P Global believes that the Trump administration’s shifting policy mix continues to result in a faster decline in growth in 2025. While the firm’s full-year growth rate remains unchanged at 1.9% (mainly because of higher base effects from a strong end to 2024), it expects a downshift in growth to 1.6% by Q4. It expects unemployment to drift higher, peaking at 4.6% by midyear 2026, with the public sector likely to limit the payroll expansion. This contrasts with strong contributions to job growth over the past 2 years.

S&P Global expects inflation to remain closer to 3.0% in 2025 as tariffs result in higher prices along the domestic supply chain and for end consumers. Therefore, the company anticipates one 25-basis-point federal funds rate cut for 2025, closing the year at the 4.00%-4.25% range.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

US Economy to Grow in 2025, Says Russell Investments

For 2025, Russell Investments expects a soft landing for the US economy. It assumes that the new administration will ease the more aggressive stances on tariffs and immigration. As per the firm, the US economy is projected to grow at a trend-like pace of 2.0% in 2025. The Trump administration’s policies exhibit a delicate balancing act. The firm believes that tax reforms and deregulation can help stimulate growth, mainly in domestic and cyclical sectors. Its working assumption is focused on the new administration not aggressively pursuing policies that result in inflation risk.

While the tariffs and immigration controls are likely to be implemented, the firm opines that the extent is expected to be constrained by the inflation outlook. Overall, Russell Investments expects the policy mix to support business confidence, which can fuel a resurgence in capital markets and offer favorable tailwinds for private assets.

Our Methodology

To list the 10 Best Long Term Growth Stocks to Buy According to Billionaires, we used a screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies that have exhibited at least ~20% revenue growth over the past 5 years.  For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Palantir Technologies Inc. (NASDAQ:PLTR)

5-Year Revenue Growth: ~31.01%

Number of Billionaire Investors: 16

Number of Hedge Funds: 64

Palantir Technologies Inc. (NASDAQ:PLTR) is engaged in building and deploying software platforms for the intelligence community to assist in counterterrorism investigations and operations. The company’s Artificial Intelligence Platform (AIP) can be a game-changer in enterprise AI adoption. Its capability to integrate, manage, and secure data while, at the same time, offering AI-powered insights places it well as a comprehensive solution for organizations that focus on leveraging AI throughout operations.  Palantir Technologies Inc. (NASDAQ:PLTR)’s success in implementing AIP throughout industries, such as healthcare, retail, manufacturing, and supply chain, exhibits its versatility as well as its potential for significant adoption.

Palantir Technologies Inc. (NASDAQ:PLTR)’s emphasis on interoperability and ability to replace homegrown or greenfield offerings with AI-integrated workflows can place it as a critical player in the broader enterprise AI ecosystem. With the platform continuing to evolve and expand its capabilities, it can act as a critical tool for organizations that seek to harness the power of AI and data analytics. As the companies continue to recognize the need for AI-driven decision-making and operational efficiency, Palantir Technologies Inc. (NASDAQ:PLTR)’s AIP can play a critical role in ramping up AI adoption throughout sectors.

Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Two software stocks that the Fund did not own, Palantir Technologies Inc. (NASDAQ:PLTR) and AppLovin Corporation, each gained more than 100% and accounted for 52% of the Benchmark’s gain during the quarter. At year end 2024, Palantir was valued at approximately 200 times its expected 2024 earnings, while AppLovin was valued at 80 times. The market cap of each exceeded $100 billion, and the two stocks represented nearly 8% of the Index. Neither company met our criteria for investment. The total impact on relative performance from Palantir and AppLovin was about 7 times higher than we have seen historically for two securities that are unique to the Benchmark, showing just how unparalleled the event was and something that we believe is unlikely to be repeated.”

Overall, PLTR ranks 5th on our list of best long term growth stocks to buy according to billionaires. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.