2023-04-25 06:30:00 ET
SentinelOne (NYSE: S) and Palantir (NYSE: PLTR) both leverage AI technologies to challenge their legacy software peers. SentinelOne's Singularity XDR (extended detection and response) platform completely replaces human analysts with automated AI algorithms, which it claims are faster, more accurate, and more cost-efficient for companies.
Palantir's Gotham platform aggregates data from a wide range of external sources to help government agencies make mission-critical decisions. Its Foundry platform helps commercial customers make similar data-driven business decisions.
Both companies initially dazzled investors with that disruptive potential, and their stocks hit record highs during the buying frenzy in growth stocks in 2021. Yet SentinelOne and Palantir now both trade nearly 80% below those levels. Rising interest rates drove investors toward more conservative investments over the past year, and both companies failed to live up to their bubbly valuations as their growth rates cooled off. Should investors buy either of these out-of-favor growth stocks today?
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Better AI Stock: SentinelOne vs. Palantir