Palantir vs. MicroStrategy: Which Nasdaq 100 Newcomer Should You Invest In?

The Nasdaq 100 welcomed two rising stars: Palantir Technologies (PLTR) and MicroStrategy (MSTR). Both stocks have surged this year, fueled by unique catalysts—Palantir’s dominance in AI-driven data analytics and MicroStrategy’s Bitcoin-centric strategy. With investors seeking the next big opportunity, we analyze which stock presents the better buy for 2024.

Palantir (PLTR): AI-Driven Growth Continues

Palantir’s inclusion in the Nasdaq 100 reflects its meteoric rise, driven by robust earnings and expanding business.

Palantir Technical Analysis

• Current Price: $73.53
• Resistance Levels:
  • $74.39 – Immediate resistance; a breakout could target $80.97.
  • $80.97 – Strong resistance from recent highs.
• Support Levels:
  • $73.01 – Key short-term support near current levels.
  • $65.79 – Strong medium-term support aligned with the 20-day EMA.
• Moving Averages:
  • 20-Day EMA: $69.10 – Short-term momentum remains bullish.
  • 50-Day EMA: $59.11 – Strong long-term uptrend intact.

Palantir’s Key Drivers

1. AI Growth Catalysts: Palantir’s AI platforms are gaining traction, particularly in government and commercial sectors.
2. Revenue Expansion: Q3 results showed 20% YoY revenue growth, with guidance pointing to sustained gains.
3. Profitability Focus: Palantir reported consecutive quarters of adjusted profitability, a critical milestone for investors.

MicroStrategy (MSTR): The Bitcoin Play

MicroStrategy is the largest corporate holder of Bitcoin, positioning its stock as a proxy for BTC prices.

MicroStrategy Technical Analysis

• Current Price: $381.42
• Resistance Levels:
  • $386.42 – Immediate resistance; a breakout here targets $444.63.
  • $444.63 – Major upside level to watch.
• Support Levels:
  • $364.95 – First key support near the 20-day EMA.
  • $280.49 – Strong support if selling pressure increases.
• Moving Averages:
  • 20-Day EMA: $379.66 – Current price hovering near short-term momentum levels.
  • 50-Day EMA: $321.56 – The trend remains bullish above this point.

MicroStrategy’s Key Drivers

1. Bitcoin Correlation: MicroStrategy’s stock moves closely with BTC prices, which are climbing amid institutional adoption.
2. Aggressive Strategy: CEO Michael Saylor’s BTC acquisitions continue, leveraging debt to expand holdings.
3. High Volatility: While upside potential is significant, MSTR remains riskier due to Bitcoin price swings.

Fundamental Comparison: PLTR vs. MSTR

Metric	Palantir (PLTR)	MicroStrategy (MSTR)
Current Price	$73.53	$381.42
Market Cap	$156B	$8.4B
Revenue Growth (YoY)	20%	N/A (Bitcoin focus)
Profitability	Adjusted EPS Positive	Net Loss (BTC Exposure)
Primary Driver	AI & Data Analytics	Bitcoin Holdings

Final Verdict: Which Stock is the Better Buy?

• For Growth Investors: Palantir (PLTR) is the clear winner. Its AI-driven revenue growth, improving profitability, and consistent uptrend make it a safer bet.
• For Risk-Tolerant Investors: MicroStrategy (MSTR) offers massive upside tied to Bitcoin’s price trajectory, but it carries significant volatility risk.

Final Verdict: Which Stock is the Better Buy?

If you’re chasing steady growth and a solid AI future, Palantir (PLTR) checks all the boxes with its strong performance and expanding commercial footprint. On the other hand, MicroStrategy (MSTR) is for thrill-seekers who want a high-stakes ride alongside Bitcoin’s ups and downs. Both stocks are exciting in their own right, but Palantir offers a smoother path for long-term investors. At the same time, MicroStrategy delivers the adrenaline rush for those willing to embrace the volatility.