Palantir Sees Rapid Growth as Paycom Slows Despite Strong Margins
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Palantir's new AI Platform is seeing rapid adoption, with nearly 300 organizations using it as of Q3 2022. Revenue grew 17% year-over-year.
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Palantir has posted 4 straight profitable quarters and expects to remain profitable going forward, strengthening its balance sheet.
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Paycom is a payroll and HR software company whose stock dropped 63% from its peak due to slowing growth.
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Paycom's revenue growth slowed to 21.6% year-over-year in Q3 2022, down from 30% historically. Efficiency improvements are cannibalizing other services.
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Despite slower growth, Paycom continues posting strong margins of 20.6%. At 21 times 2024 earnings, Paycom could power strong returns.