Several growth stocks, including Palantir Technologies, Monday.com, and SoFi Technologies, recently exceeded expectations in their third-quarter earnings. While analysts remain cautious on Palantir and SoFi, Monday.com stands out as a long-term buy.

1. Palantir Technologies (PLTR):

  • Performance Highlights:
    • Q3 revenue grew 30% YoY to $725.5 million, driven by AI demand.
    • U.S. government revenue accelerated to 40% growth, with U.S. commercial business up 54% YoY.
    • Customer count in U.S. commercial business rose 77% compared to Q3 2023.
  • Stock Movement:
    • Shares surged 283% YTD, buoyed by inclusion in the S&P 500 and AI tailwinds.
  • Analyst View:

2. Monday.com (MNDY):

  • Performance Highlights:
    • Q3 revenue grew 33% YoY to $251 million.
    • Surpassed $1 billion in annual recurring revenue (ARR).
    • Net dollar retention rate reached 111%, with a growing larger customer base.
  • Stock Movement:
    • Shares are up 40% YTD but fell post-earnings due to subdued Q4 guidance.
  • Analyst View:
    • Analysts see the pullback as a buying opportunity, citing strong execution and profitability improvements.
    • Rating: Strong Buy, with a price target of $325.67, implying 24% upside potential.

3. SoFi Technologies (SOFI):

  • Performance Highlights:
    • Revenue grew 30% YoY to $697 million.
    • Achieved EPS of $0.05, up from a loss of $0.29 YoY.
    • Financial Services and Tech Platform segments now account for 49% of adjusted net revenue.
  • Stock Movement:
    • Shares advanced 37% YTD as the company shifted to capital-light, higher RoE revenue streams.
  • Analyst View:
    • Concerns over accounting methodologies and near-term valuation challenges.
    • Rating: Hold, with a price target of $10.13, implying 26% downside potential.

While all three stocks delivered solid Q3 results, Monday.com emerges as the top analyst pick for long-term growth, thanks to its improving retention rates, profitability, and robust ARR growth. Palantir and SoFi show promise but face challenges around valuation and market dynamics. Investors seeking reliable growth should keep an eye on Monday.com for its potential to outperform the broader market.

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This story was originally featured on Tipranks.com