US Stocks: Whose Profits Are Growing Fastest?
For investors, it's crucial to distinguish real business growth from one-off accounting events. We looked at the latest quarterly results and selected four companies that stand out with strong numbers. While for some, growth is driven by explosive demand for their products, for others, it's a matter of efficiency or asset revaluation. Here's an overview of companies worth watching right now.
Palantir is currently an undisputed growth star. The company's operating profit grew by nearly 250% year-over-year, and sales revenue jumped by over 60%. This isn't a random flash in the pan but a sign that their technology has become indispensable—especially in the US market, where commercial sales have more than doubled.
The reason behind this success is simple: companies and government agencies increasingly need data analytics and artificial intelligence solutions. A recent major contract with the US Navy further solidifies their position. For investors, this signals a strong product, although the high stock price means expectations are cranked to the max.
Marvell Technology has managed to turn last year's loss into a solid profit, growing its operating profit by over 150%. Although the stock price has recently fallen due to general market uncertainty, the financial results tell a different story: the company's sales revenue is growing robustly, and restructuring costs are under control.
The engine of this growth is data centers. As the world needs increasingly powerful servers to run artificial intelligence, Marvell's chips and devices are in high demand. This is a classic example of how one strong sector can pull a company's overall results upward, even when investors are currently cautious.
The food delivery business was long considered a cash-burning machine, but DoorDash has proven otherwise. Their operating profit grew by over 140%, and most importantly, this was achieved because sales revenue grew faster than costs. The company has learned to operate its massive network profitably.
However, the sky isn't entirely clear. While the numbers look good, Amazon is entering the market with its grocery delivery service, which could make life difficult for DoorDash. For investors, there are two sides to this coin: on one hand, excellent financial discipline; on the other, a growing risk that a major competitor could start chipping away at its market share.
On paper, MicroStrategy showed incredible profit growth of over 1000%. However, one must be cautious here: this figure doesn't come from software sales but from a new accounting rule that allows the company to immediately recognize Bitcoin's price appreciation as profit.
Essentially, this is a bet on the crypto market, not a typical technology company. The good news is that the company will remain in the Nasdaq 100 index, which adds stability to the stock. For investors, however, this is a rollercoaster ride—if Bitcoin rises, MicroStrategy shines, regardless of how its software business is performing.
Conclusion
In summary, we are seeing two types of growth in the US market. On one side are Palantir, Marvell, and DoorDash, who are growing profits thanks to strong products and more efficient operations. On the other side is MicroStrategy, whose results depend on financial revaluations. When making investment decisions, it's always wise to look deeper into the profit numbers—to see whether the money is coming from customers or from accounting.
RYTM content is for informational purposes only, not financial advice or recommendations. You are solely responsible for your investment decisions. Always consult a professional.