Despite challenges such as rising national debt, an aging population, and increased interest expenses, the positive future of the U.S. economy is underscored by recently enacted legislation to curb federal spending and stronger-than-expected economic growth. The Congressional Budget Office’s report indicates that annual deficits over the next decade are 7% smaller than previously forecast, partly due to a two-year deal to limit discretionary spending and a surge in new workers, primarily immigrants, entering the labor force.
While the fiscal trajectory remains challenging, the slight improvement in the projections signals a more optimistic outlook for the U.S. economy. Investing in these big-data stocks has the potential to propel your portfolio to success, mirroring the achievements of our thriving economy.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR) is a SaaS company focused on the development of data integration and software solutions for the private and public sectors, primarily through the implementation of AI. Founded by people heavily involved in AI, such as Peter Thiel, Palantir has been among the most innovative companies in this sector.
Q4 2023 earnings records exceeded expectations, leading to a surge of nearly 20%. This has defied market expectations, with analysts expecting a potential downside of 27.097%. However, financial indicators, and certain institutions, suggest otherwise. On receiving Q4 earnings, Citigroup gave a neutral outlook on PLTR, an upgrade from the previous sell position. 70% YoY domestic revenue growth, GAAP net income of $93 million, with a 15% margin, and multiple other metrics indicate strong financial growth. 2023 was also the first fiscal year where Palantir posted a profit.
While governmental interest in Palantir is drying up, the commercial market is propelling its growth. The company reports that it is expecting a revenue of $640 million from U.S. commercial markets, a 40% YoY increase. PLTR’s Artificial Intelligence Platform (AIP), a data integration and analysis service for enterprises, has become a leading product.
As the demand for AI solutions increases, Palantir has great growth potential. Continued innovation will lead to Palantir continuing to do great. Strong financials and growth outpacing Wall Street expectations make it a strong buy.
MongoDB Inc. (MDB)
MongoDB Inc. (NASDAQ:MDB) offers a general-purpose database platform, which it hosts on the cloud, on-premise, and in a hybrid environment. Its stock currently trades for $457.39 and is up 105.45% from 12 months prior.
MongoDB’s products particularly stand out from its competitors due to their relevance to AI. Many organizations today are creating generative AI using large language models. To power these generative AI platforms, companies need to use vector databases that store data in numeric representations. To take advantage of this trend, MongoDB released the MongoDB Atlas vector search. The tool uses machine learning to navigate these databases, providing users with high accuracy of information and accelerated data indexing.
With its strong competitive advantage in AI capabilities, MongoDB reported $432.9 million in revenue, a 30% increase YoY. The company also continued its strong customer growth and now has 46,400 customers compared to 39,100 12 months ago.
In summary, generative AI provides a huge opportunity for MongoDB. Combined with its double-digit revenue and customer growth, these factors position the company for success.
Datadog Inc. (DDOG)
Datadog Inc. (NASDAQ:DDOG) is an observability and security platform for cloud applications and provides infrastructure monitoring, database monitoring, cloud security management, and more. Currently, large amounts of data are collected every day and companies require data analytics platforms to understand the information. Combined with high levels of cloud adoption across enterprises, these factors are driving growth in the observability tools and platforms market which is expected to grow at a CAGR of 11.7% until 2028. Datadog, a key player in this market, stands to benefit. Its stock has already shot up 62.62% in the past 12 months and currently trades for $130.62.
Datadog is currently experiencing strong growth, and management expects it to continue. For Q3 2023, the company reported revenue of $547.5 million, up 25% YoY. For Q4 2024, management predicts revenue to be as high as $568 million which would be a YoY increase of 21%. In addition to revenue growth, Datadog has been focusing on profitability. In Q3 2023, the company achieved a gross margin of 82.3% compared to a gross margin of 81.3% in Q2 2023 and 79.7% in Q3 2022.
Moreover, Datadog recently released a generative AI copilot, Bits AI, which helps users identify relevant Datadog workflows to solve issues. Bits AI’s natural language capabilities can facilitate deeper investigations to draw meaningful information from large amounts of data, streamline incident response, and prevent issues from recurring.
To summarize, Datadog’s strong growth, increasing profitability, and AI integration make it a compelling investment.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.