Jim Cramer Discussed These 15 Stocks Recently

2. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 63

Turning to Palantir Technologies (NYSE:PLTR), Cramer noted how the stock has become a retail investor favorite, seemingly disconnected from fundamentals:

“Palantir is now a $292 billion market cap. It sounds preposterous when you realize the stock’s selling at 235 times earnings. It’s absurdly expensive, but here’s the catch: the numbers are extremely great.”

Palantir specializes in data analytics for government and commercial sectors, with its platforms used for defense, healthcare, and financial services. Cramer pointed out how CEO Alex Karp’s media presence continues to fuel the stock’s momentum, but also warned against chasing the stock purely on hype:

“Alex Karp was on Squawk Box this morning promoting his new book. Second time on our network and, like clockwork, the stock jumped another five bucks to hit an all-time high. It’s almost automatic. […] People are valuing Palantir like they valued GameStop at its peak. The difference? Unlike GameStop, Palantir has a brain and a real growth story. But the valuation? That’s the problem.”

Baron Asset Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q4 2024 investor letter:

“Two software stocks that the Fund did not own, Palantir Technologies Inc. (NASDAQ:PLTR) and AppLovin Corporation, each gained more than 100% and accounted for 52% of the Benchmark’s gain during the quarter. At year end 2024, Palantir was valued at approximately 200 times its expected 2024 earnings, while AppLovin was valued at 80 times. The market cap of each exceeded $100 billion, and the two stocks represented nearly 8% of the Index. Neither company met our criteria for investment. The total impact on relative performance from Palantir and AppLovin was about 7 times higher than we have seen historically for two securities that are unique to the Benchmark, showing just how unparalleled the event was and something that we believe is unlikely to be repeated.”