Palantir is one stock to own in hopes of its growing to a trillion dollar market cap, investor says
Palantir is one stock to hold for the long term despite the stock market's recent volatility, as the artificial intelligence software company might eventually land a $1 trillion market value, according to Will McGough, Prime Capital Financial director of investments. The investor said Palantir remains a buy even though the stock has rallied 55% this year. The latest move has lifted the company's valuation to $281 billion, surpassing Salesforce, which is 10 times bigger in terms of revenue. Palantir was one of three stocks McGough called out as buys during CNBC's " Power Lunch ." Palantir Shares of Palantir have built on last year's 340% advance as the data analytics and AI software firm recently joined the top 10 largest U.S. technology companies by market capitalization. McGough said even though he's not a big fan of the stock's technical setup on the basis of price charts after this year's huge runup, the stock has a plenty more room to go in the long run. "I think you own for the ride to a trillion dollar market cap knowing it's going to be extremely volatile," McGough said. Palantir has price-to-earnings and other multiples that are far higher than its large-cap tech peers. Palantir currently trades for 520 times trailing earnings, almost 200 times forward earnings and 90 times revenue. Lyft On Lyft, which just reported earnings this week, McGough suggested investors hold it if they already own it. McGough said the wildcard about Lyft is that they could be a potential acquisition target. Lyft has been a big outperformer this year, up about 28%. The stock got a boost this week after the ride-sharing company boosted its share buyback authorization to $750 million as part of its first quarter earnings report. LYFT YTD mountain Lyft in 2025. Expedia McGough believes travel agency Expedia is a sell as it faces a tough fundamental backdrop due to trade conflict and rising protectionism that may serve to dampen consumer spending. Meanwhile, it's an old tech name in the cross hairs of AI, McGough added. EXPE YTD mountain Expedia Earlier this week, Expedia reported mixed first-quarter results. While earnings exceeded expectations, revenue came in slightly below analysts' consensus estimate, according to FactSet. On top of that, the company lowered its gross booking guidance for 2025.
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