We have recently released a list of 10 S&P 500 Stocks That Outperformed Bitcoin in 2024. In this piece, we will examine Palantir Technologies Inc. (NASDAQ:PLTR) and how it compares to other S&P 500 stocks that surpassed Bitcoin’s performance in 2024.
Bitcoin’s price has seen significant fluctuations since the inauguration of U.S. President Donald Trump, maintaining around $100,000 since reaching that level in December. The optimism surrounding Bitcoin has surged with Trump’s presidency, as many anticipate a more favorable regulatory landscape for digital currencies. Following the SEC’s approval of the inaugural U.S. spot Bitcoin ETF last year, Bitcoin exceeded the $70,000 mark that was set in 2021. This event was largely viewed as a pivotal moment for the cryptocurrency, enhancing its appeal to mainstream investors. So far this year, Bitcoin’s price has more than doubled, with numerous analysts projecting that it could soar to $200,000 in 2025.
In a recent interview with CNBC, James Butterfill, head of research at crypto-focused asset management firm CoinShares, mentioned that Bitcoin could trade between $80,000 and $150,000 in 2025. He noted that it wouldn’t be “unreasonable” to foresee Bitcoin capturing approximately 25% of gold’s market share, up from about 10% today. If Butterfill’s $80,000 prediction comes to pass, it may be due to President Trump’s inability to deliver on his pro-crypto promises.
Several hedge fund managers are also eager to have a stake in Bitcoin. For instance, ARK Invest’s Cathie Wood firmly believes Bitcoin will reach $1.5 million by 2030. Known for her ambitious forecasts, she presented this scenario at Ark’s Big Ideas 2025 conference, asserting that the likelihood of achieving this figure has increased. Wood proposed three scenarios: a moderate estimate of $710,000, a conservative figure of $300,000, and a bullish one of $1.5 million.
Given all this information, is investing in Bitcoin worthwhile? Despite the popularity of cryptocurrencies like Bitcoin, their values can fluctuate significantly. The market lacks the transparency found in stocks, transactions cannot be reversed, and consumer protections are minimal to nonexistent. As per Charles Schwab, due to Bitcoin’s extreme volatility and susceptibility to high transaction fees, it appears to have limited utility as a medium of trade or as a store of value. This indicates that equities usually present less volatility compared to cryptocurrencies like Bitcoin.
For this compilation, we concentrated on S&P 500 stocks that exhibited price performance exceeding that of Bitcoin (92.73%) as of February 17. These stocks are arranged in ascending order based on their 1-year price performance, and we included hedge fund sentiment for each stock to enrich understanding of their market position.
Why is hedge fund activity important to us? The answer is straightforward: our research indicates that emulating the top stock choices of leading hedge funds enables us to outperform the market. Our quarterly newsletter selects 14 small-cap and large-cap stocks every quarter and has achieved a 275% return since May 2014, outperforming its benchmark by 150 percentage points (see more details here).
Palantir Technologies Inc. (PLTR): Among S&P 500 Stocks That Outperformed Bitcoin in 2024
A software engineer managing an extensive network of code on digital displays.
1-Year Price Performance: 409.23%
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) specializes in data analytics and software, developing platforms designed to assist intelligence agencies and various enterprises in understanding significant data sets.
Recently, Palantir Technologies (NASDAQ:PLTR) announced results that exceeded projections for the fourth quarter. The data analytics company posted adjusted earnings of $0.14 per share on revenue of $827.5 million for the fourth quarter, surpassing analysts’ estimates of $0.11 per share and $778.2 million. The total revenue for the quarter surged by 36% year-over-year, with CEO Alex Karp attributing this growth to increasing demand for AI.
After Palantir’s earnings surpassed expectations in Q4, Morgan Stanley analyst Sanjit Singh upgraded the stock from Underweight to Equal Weight, raising the price target from $60 to $95. Despite the stock being deemed “ultra premium,” Morgan Stanley does not foresee any downward triggers for the share price in the next four quarters. Given Palantir’s robust outlook, the firm believes it was misguided to anticipate growth dipping below 30% in 2025 amidst stricter comparisons.
The Alger Mid Cap Focus Fund commented on Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:
“Palantir Technologies Inc. (NASDAQ:PLTR) develops advanced platforms for data integration, management, and security, facilitating interactive, AI-enhanced analysis for users. Its primary products include Palantir Gotham for government clients and Palantir Foundry for the commercial sector. Initially focused on U.S. intelligence agencies, Palantir has broadened its scope to include defense contracts with western governments and ventured into the commercial market in 2016. During the recent quarter, shares contributed positively to performance following better-than-anticipated operating results for the fiscal third quarter and management’s increase of its full-year 2024 revenue guidance. Management has pointed out that the recent launch of its AI platform (AIP), which utilizes generative AI to enhance business operations, has spurred significant growth and investor interest. Furthermore, we believe Palantir could play a crucial role in the U.S. government’s newly formed Department of Government Efficiency (DOGE), as its AI-driven solutions are perfectly positioned to identify inefficiencies, effectively allocate resources, and achieve cost savings.”
In summary, PLTR ranks 1st on our compilation of S&P 500 stocks that surpassed Bitcoin’s performance in 2024. While we recognize PLTR’s potential as an investment, we believe that certain AI stocks may offer better prospects for achieving higher returns in a shorter period. If you’re seeking a more promising AI stock than PLTR that trades under 5 times its earnings, be sure to check out our report regarding the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
