It’s safe to say Israel Englander knows a thing or two about growth. Back in 1989, he launched Millennium Management with just $35 million. Fast forward to today, and the firm has become one of the world’s largest alternative investment companies, managing over $75 billion in assets and employing more than 6,200 people worldwide. Englander’s own fortune now sits at $18.9 billion, and that kind of remarkable growth naturally resonates with investors.
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When investors are chasing big gains, growth stocks are usually where they look first. These companies are expected to expand at a much faster clip than the broader market or their industry peers. They often plow profits straight back into operations – or even run at a loss – in order to keep scaling. Many are active in disruptive or emerging markets, where the potential for massive returns is particularly strong.
Palantir (NASDAQ:PLTR) and Archer Aviation (NYSE:ACHR) both fit that mold. Palantir is pushing boundaries in big data and AI, while Archer is pioneering the eVTOL space, a segment still very much in its early days. Each has delivered remarkable gains for shareholders over the past year and is viewed as a major player in its field.
Unsurprisingly, then, these names have also found their way into Englander’s portfolio. But his latest moves suggest a clear preference. During Q2, the billionaire added significantly to one of these positions while scaling back his stake in the other. Let’s take a closer look.
Palantir
If we’re on the subject of growth stocks, then Palantir is practically the best place to start. Growth has been on tap here, both in the company’s real-world performance, and for the shares. This stock is up by a mighty 415% over the last year, and by 1904% over the past three-year period.
Palantir has built its reputation as a leader in data analytics and artificial intelligence, providing software platforms that help organizations make sense of massive and complex data sets. Initially known for its work with government agencies, Palantir has steadily expanded into the commercial sector, where demand for data-driven decision-making is on the rise. The company works at the crossroads of big data and AI, providing tools that analyze information and turn it into insights to guide key business decisions.
The Palantir growth story really came into its own in April 2023, when it launched its Artificial Intelligence Platform (AIP). AIP allows enterprises to integrate large language models directly into their own workflows, while maintaining security and control over sensitive data. What sets AIP apart is its ability to bring AI into real-world applications – from supply chain optimization to defense planning – where accuracy and trust are critical.
Since its release, Palantir has been delivering a series of strong earnings releases as was the case in the recent Q2 readout. Revenue climbed by 47.5% year-over-year to reach $1 billion, surpassing Wall Street’s estimate by $60.53 million. On the earnings side, adj. EPS came in at $0.16, topping expectations by $0.02. Looking forward, the company boosted its full-year revenue outlook to a range of $4.142 to $4.150 billion, well ahead of the $3.90 billion the Street had in mind.
Meanwhile, Englander has been matching Palantir’s upbeat results with his own show of confidence. Through Millennium Management, the billionaire added nearly 3.7 million shares in Q2, bringing his fund’s holdings to just over 5 million – a stake now worth ~$782 million.
While one criticism of this name has been a very lofty valuation, Piper Sandler analyst Brent Bracelin thinks that it is justified given the huge growth on tap.
“Robust Q2 demand across both government and U.S. commercial were supportive of the intermediate-term bull-case scenario on PLTR (30-35%+ CAGR), punctuated by the biggest absolute dollar beat ever ($68M above mid-point guide) with top-line growth accelerating for the 8th straight quarter to 48% (vs. 39% prior),” Brent noted. “The 10-year $10B Army Deal strengthens the case for further government share gains within the large $1T+ Defense TAM while 93% y/y growth (vs. 71% prior) in U.S. commercial reinforces an untapped AI platform opportunity for large enterprise customers. While PLTR carries a rich valuation premium and remains a high-risk investment, the one-of-a-kind growth+margin model puts it into a unique category of one that warrants a premium, in our view.”
To this end, Bracelin rates PLTR shares as Overweight (i.e., Buy), while his $182 price target points toward 12-month returns of ~17%. (To watch Bracelin’s track record, click here)
That’s the bullish view, but it is not one shared by most Street analysts; all in, the stock claims a Hold (i.e., Neutral) consensus rating, based on a mix of 13 Holds, 5 Buys and 2 Sells. The average price target clocks in at $155,39, suggesting the shares will stay rangebound for the time being. (See PLTR stock forecast)
Archer Aviation
Disruptive innovation has a way of turning early believers into big winners, and Archer Aviation is proving that point in real time. The company sits at the forefront of the eVTOL industry, a segment that has caught investors’ attention over the past year, and its positioning has paid off handsomely – ACHR shares have soared 174% over the last 12 months.
eVTOL stands for electric vertical takeoff and landing – essentially, aircraft that can lift off like a helicopter but run on electric power. In many ways, these aircraft resemble flying taxis, offering the promise of quick, urban air travel that could bypass congested routes on the ground. Soon, urban skies might resemble futuristic scenes straight out of a science fiction movie.
However, the thing to remember here is that all of that has yet to take place, and for now, Archer remains in the pre-revenue phase. And while the company has nabbed an eye-catching role as the official air taxi provider for both the 2028 Los Angeles Olympic and Paralympic Games and for Team USA, there’s plenty of groundwork ahead before that can become reality.
Archer is in the process of securing FAA certification, although it expects to debut its Midnight air taxi even sooner in the UAE through its Launch Edition program, which aims to roll out aircraft in early-adopter markets to build operating expertise. Current partners include Abu Dhabi Aviation, Ethiopian Airlines, and PT. Industri Ketahanan Nasional (IKN) in Indonesia.
Meanwhile, in the US, Archer has been ramping up production of the Midnight aircraft, with six units currently in production and three already in final assembly at its facilities in California and Georgia.
The company also has a strong balance sheet and is backed by $1.7 billion in cash and the support of Stellantis, giving it the funding to fulfil its ambitions. Beyond the flying taxi market, Archer is pushing into defense through its Archer Defense unit, strengthened by two recent acquisitions: intellectual property and talent from Overair, and composite manufacturing assets, including a 60,000-square-foot facility, from Mission Critical Composites in Southern California.
While the news flow out of Archer HQ is fairly constant, maybe Englander has been thinking the share gains are enough for now. During Q2, he offloaded 79% of his ACHR stake, selling 1,311,310 shares, a chunk worth ~$11.15 million.
That cautious stance is one J.P. Morgan analyst Bill Peterson currently adheres to. While Peterson finds a lot to like here, the share price surge keeps him on the sidelines for now.
“We expect to see Archer continue to grow its aircraft fleet over the next 12-18 months, begin exhibition flights, and then ramp to full commercial flights upon certification in both the US and the UAE,” the analyst said. “While we still have a hard time sizing the defense opportunity or predicting its timing, it still feels nearer-term than the civil opportunity, with Archer set on tapping a defense Program of Record in the US, which could also benefit the civil side in terms of technology advancements, with incremental defense opportunities in other global markets as well… From a stock perspective, we remain Neutral ACHR, as we think the chances of success are currently priced into the stock at current levels.”
That Neutral rating comes along with a $10 price target, a figure that nevertheless points toward one-year returns of 17.5%. (To watch Peterson’s track record, click here)
Peterson, though, is the lone skeptic here; on the Street, all 6 other recent reviews are positive, making the consensus view a Strong Buy. At $13.14, the average price target suggests shares will surge ~54% over the next year. (See ACHR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.