Spotify vs. Palantir and Robinhood: Which High-Flying Growth Stock is Wall Street Most Bullish About?
In 2025, few large-cap stocks have been as hot as Palantir Technologies (NASDAQ: PLTR), Robinhood Markets (NASDAQ: HOOD), and Spotify Technology (NYSE: SPOT). However, which of these high-flying growth stocks is Wall Street most bullish about? The answer appears to be Spotify.
Palantir: An AI Powerhouse, but the Price Isn't Right
Palantir Technologies CEO Alexander Karp said in the company's first-quarter earnings press release that they are in the middle of a "tectonic shift" in the adoption of their software. The company's revenue jumped 39% year over year in Q2, with U.S. revenue soaring 55%. The artificial intelligence (AI)-software company's commercial sales rose more than its government sales, which have been Palantir's mainstay since its founding.
While Palantir is unquestionably an AI powerhouse, Wall Street isn't overly optimistic about the stock over the near term. The average 12-month price target for Palantir is nearly 28% below the current share price. Of the 25 analysts surveyed by LSEG in June, only four rated the stock as a buy or strong buy. Six analysts rated Palantir as either underperform or sell, while the other 15 analysts recommended holding the stock.
The problem with Palantir isn't its underlying business but rather its valuation. Shares trade at a sky-high forward price-to-earnings multiple of 250. While impressive growth rates can justify such a high valuation, Palantir's growth rate isn't enough to convince most analysts that the current share price is defensible. Additionally, the company itself projects a slightly slower growth rate for full-year 2025 than it delivered in Q1.
Robinhood: Cashing in on Crypto, but Analysts are Conflicted
Robinhood continues to fire on all cylinders. The financial services platform's total net revenue increased by 50% year over year in Q1, and its profits skyrocketed 114%. Much of Robinhood's success is due to its expanding support of cryptocurrency. Crypto-related revenue doubled year over year in Q1 and made up more than one-fourth of total revenue.
However, Wall Street seems to be conflicted about Robinhood right now. Sure, 15 of the 22 analysts surveyed by LSEG in June recommend the stock as a buy or strong buy, but that bullishness doesn't carry over to share-price projections. The consensus 12-month price target for Robinhood is almost 14% below the current share price.
The reason behind this disconnect is likely some concerns about valuation. Robinhood's shares trade at 52.6 times forward earnings. Additionally, analysts might be leery of Robinhood's dependence on cryptocurrency trading volumes, which can be volatile. It isn't surprising that CEO Vlad Tenev downplayed crypto somewhat in Robinhood's Q1 earnings call, stating that the company is "diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes."
Spotify: Bringing Music to Investors' Ears, but a Familiar Problem
That brings us to Spotify. The audio streaming leader's revenue rose 15% year over year in Q1. Even more impressively, free cash flow jumped 158% year over year to a record high for the first quarter. Similar to Palantir and Robinhood, the consensus Wall Street 12-month price target for Spotify stock is lower than the current price. However, the implied downside of roughly 5.5% isn't as pessimistic as the price targets for the other two skyrocketing stocks on this list. Also, 25 of 39 analysts surveyed by LSEG in June rated Spotify as a buy or strong buy.
The reason analysts might not think
