We recently published a list of Jim Cramer Discusses These 10 Stocks & Dissects President Trump’s China Tariffs. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other stocks that Jim Cramer discusses.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer discussed China’s retaliatory actions against President Trump’s tariffs. The program was aired on the day China retaliated, and Cramer commented on Chinese actions against coal gas and others and export control on critical minerals. Starting from coal, he shared “Coal, very much in demand in Western Europe. Liquefied natural gas, demand everywhere. Minerals, okay they’ve already had pretty tight controls.”
Since the natural resources targeted by China were already in demand in other regions, he outlined: “So I look at this and I say, alright, what they’re saying is. We don’t wanna go to war. So what we’re gonna do is demonstrate that we’re going after some things. That we know they are not important to you. We know it doesn’t hurt any aspect but we can’t lose face here. We gotta do something.”
Cramer believes that the restrictions against “Liquefied natural gas [are] the funniest one. Because the demand for liquefied natural gas is insane.” As a result, he believes that the Chinese reaction was “a statement which basically says Mr. President, we heard you, maybe we ought to sit down and talk. Now there are some people would say appeasers, I don’t want to use that strong term. There are people within the government who very much want a deal. I think the President very much wants a deal. They can raise the ten to twenty five.”
The CNBC host also believes that the Chinese actions suggested that they were trying to find common ground with the President. He believes “what they’re saying, I think is, you know what. Common ground here. We’re gonna hit you on some things that aren’t gonna hurt you. Let’s talk. And that’s what this is.” On the other hand, the actions against Canada were “very central to their country,” he outlined.
“China is basically saying, look, come on, let’s do some talking,” Cramer added. He believes that it would be important to hear next “is China going to do anything that lessens its friendship with Russia?” When asked why China would do that, Cramer replied “Well because I think that the President perceives . . . .the Russians [are] losers now. And the President does not like losers. I think he’d like to separate China.”
He also shared details about a potential difference in opinion in the White House over the Trump administration’s approach against China. According to Cramer:
“I think China, I just continue to believe that there are two camps. There’s the Navarro camp, his excellent book which talks about what China is about, which is we are at war. . . . And then there’s the China we want a deal [with]. And we don’t know where the President is. We just don’t know. We don’t know where he is. He’s got conflicting voices in the White House saying look we, some saying we’re at war, and some saying let’s deal.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on February 4th.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders In Q3 2024: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the most commonly discussed stocks on Cramer’s morning show. It is also one of Cramer’s favorites, and not a day goes by when the CNBC host doesn’t praise the firm’s management and CEO Alex Karp. Cramer has gone as far as to say that he now likes to refer to Palantir Technologies Inc. (NASDAQ:PLTR)’s stock ticker as KARP instead of PLTR. His remarks during this show came after the firm’s earnings report sent its stock soaring by a whopping 24%:
“This is a company that’s measured by the Rule of 40. And it came at Rule of 81. Which shows you that the revenue growth and the gross margins are extraordinary. I think that the call itself talked a lot about what the key to Palantir’s growth is, which is ontology. Meaning, it’s a core concept within its platform, designed to bridge the gap between raw data and actionable insights. What they do is they do an amazing deep dive on everybody that they have and they come back with what they should do. And the, artificial intelligence here is the king. But what they’ve really done is kind of just said look, we can make anybody much better. And the resistance is that you maybe stupid. You may not understand. It’s a very caustic, well, look, Karp is caustic. Shyam Sankar is actually very, he does a lot of defense work, he’s brilliant. He’s done a lot of good stuff. There’s a lot of really important people on the calls talking about what they’re doing say with the Special Operations Command, what they’re doing with military, which I wish they would tell you more. But what’s incredible is you bring them in and they claim that you pretty much, because of the way that they’re set up, can do a dramatic overhaul of your company. Or a dramatic overhaul of the government. They’re working with DOGE. And I think that this is a central and existential attack, ultimately, not mentioned on the call, on the companies that run our Defense Department. Now I’m talking about here Lockheed, I’m talking Northrop Grumman. I would not want to be those companies after we, they should read this conference call because this company’s coming for them. Coming for them.”
“[On Morgan Stanley’s note] Yeah I mean I think that, again when they talk about ontology, I mean you do have to read this with a, I read it with you dot com then I read it with ChatGPT. Now they think the chat obviously, they’re well beyond chat. I get that. . . .I’m just in awe of these guys, and I was trying to reference them . . .when I went through the call and I read it several times, and I used to be upset when Alex Karp cursed. I don’t even care anymore. That was wrong, you know I just cared because, he didn’t need to. I really like him and I really love this company. And by the way, the defense guy is just extraordinary and they’re going to, they’re going to change the government. And they’re working hand in glove with DOGE. Working hand in glove.”
“I said at fifty it was going to go to a hundred. . . .I am in awe. I’m not in contact with Karp. I do just think that Shyam Sankar is, really talking about the way the Defense Department has to be re-done. What I think that, that Musk is talking about saving a lot of money, what he’s really talking about is you bring an outfit like Palantir in and they distill what’s important, again, ontology, and then they go to town. And if you let them have their way, we would say, hundreds of billions of dollars.”
“Oh my I would not want to be a Defense Department contractor. Not at all. These guys are too powerful. . . .These guys, you give them the key, they are, they’re the most patriotic. I know it’s like you could say it’s way overdone. I don’t think so. I am in awe of these guys. I mean I remember there would be a period in my life where I wanted to work at Bain, I wanted to work with a consultant, with McKinsey, and I said I want to go to Goldman. I would now, and he wouldn’t take me. Alex would say, Jim you’re not smart enough. And that’s okay. That’s okay. That’s how good Palantir is.”
Overall, PLTR ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
