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Palantir is experiencing significant growth thanks to its commercial clients, with a strong emphasis on AI implementations.
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Crowdstrike has shown impressive customer retention, along with the successful adoption of its Surging Falcon Flex program and the AI-driven capabilities of Charlotte AI, making it an appealing long-term investment, despite its premium pricing.
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Investing in growth stocks hasn’t been straightforward recently. In 2025, the US stock market has been somewhat manic, fluctuating between sharp revisions and tight trading ranges, which doesn’t help build investor confidence. Yet, the fundamental long-term strategies say the same: picking stocks from companies that have solid business models and can transform innovative technologies into real profits is still the way to go.
Let’s focus on Palantir and Crowdstrike. Both companies play pivotal roles in creating modern business infrastructures, specializing in data analytics and cybersecurity. They could be wise investments for the future.
Palantir has become a favorite on Wall Street since it launched in 2020, really taking advantage of trends in AI, machine learning, and data analytics. Initially focused on defense, its Gotham and Foundry platforms have thrived in the commercial space too. The recent traction gained by its AI platform shows how well it’s doing.
What makes Palantir stand out is its comprehensive approach to AI and its use of ontology—essentially a data framework that connects real-world entities and assets within organizations to digital systems. While others chase AI models, Palantir is creating AI systems that work in real-world settings, solving real problems for clients. This strategy has fostered customer loyalty, making their platform a vital part of clients’ decision-making processes.
Financially, Palantir has shown notable performance. In the first quarter of 2025, its revenues rose by 39% compared to the previous year, reaching $884 million, with a remarkable 71% growth in US commercial operations. They’ve hit an annual revenue milestone of $1 billion for the first time. Additionally, the company secured $810 million in total commercial contracts, marking a staggering year-on-year growth of 239%.
On top of that, Palantir boasts $5.4 billion in cash and very little debt, which gives it the financial freedom to pursue AI initiatives. Their adjusted free cash flow came to $370 million in the first quarter.
Admittedly, its current valuation might seem high, trading at about 208 times advance revenue. But, despite potential overvaluation, the stock is still viewed as a reasonable long-term investment.
Moving to Crowdstrike, shares dipped after releasing its first-quarter earnings report in June 2026, but since then, they’ve largely bounced back. Although some investors may have found the revenue figures disappointing, the swift recovery indicates that others have recognized the company’s underlying strength in cybersecurity.
CrowdStrike reported a revenue of $1.1 billion in the first quarter, just meeting expectations. They added $194 million to their net annual recurring revenue and maintained an impressive 97% customer retention rate, which really showcases the importance of their services even when times are tough economically. Even with a hit of $61 million in free cash flow from previous issues, they generated $279.4 million in the first quarter.
The total contract value for customers using the Falcon Flex program hit $3.2 billion—more than six times higher than the previous year. This trend suggests customers prefer Falcon Flex’s flexible licensing, allowing them to buy credits for various modules without lengthy procurement processes. This approach not only enhances revenue visibility but also speeds up sales cycles.
Additionally, Crowdstrike’s AI-powered assistant, Charlotte AI, has been a game-changer. It automates initial threat analysis and uses unique threat intelligence collected from a broad global client base. In the coming decade, businesses are likely to deploy many AI agents, posing a mixed bag of productivity gains while potentially heightening risks of cyberattacks. Crowdstrike is well-positioned to capitalize on this evolving marketplace.
On the shareholder side, Crowdstrike has initiated a $1 billion share buyback program, which seems sustainable given their strong cash flow of $4.6 billion.
Although Crowdstrike’s valuation isn’t low—around 28.8 times sales—its offerings in a climate of constant cybersecurity threats make it seem a viable long-term investment, even at higher price levels.
Before jumping into stocks like Palantir Technologies, investors should take some time to think it over.
