Big data stocks are expected to advance in the coming months given the increasing use of advanced technologies such as AI and IoT by individuals and businesses. However, because the valuations of Palantir (PLTR), Datadog (NASDAQ:DDOG), and MongoDB (NASDAQ:MDB) have exceeded their growth potential significantly, we think it’s wise to avoid these big data names for now.With the increasing use of artificial intelligence (AI), Internet of Things (IoT) and cloud-based services across several industries, companies involved in big data are expected to generate solid growth. Though many of the big data stocks are retreating as part of the broader tech sell-off, the downtrend for these stocks may not continue for long.
The global big data and business analytics market is expected to grow at a 10.9% rate through 2027.
However, against even this encouraging backdrop, big data companies Palantir Technologies Inc. (PLTR), Datadog, Inc. (DDOG), and MongoDB, Inc. (MDB) appear to us to be significantly overvalued currently given their weak financials and growth prospects. So, we think it’s wise to avoid them.