Jim Cramer Discussed These 29 Stocks Ahead Of Major AI Event

20. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders In Q3 2024: 43

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the hottest data analytics companies on Wall Street. The firm’s shares have gained 316% over the past twelve months on the back of investor optimism over AI and its ability to benefit from a push in reduced defense spending and cater to the US business sector. However, year-to-date Palantir Technologies Inc. (NASDAQ:PLTR)’s shares have lost 10.5% on the back of Ark Invest selling $36 million of stock and Morgan Stanley set an Underweight rating and a $60 price target. Here is what Cramer said:

“I think that you live in fear. Anyone who downgrades Palantir, look over your shoulder, please.

“I alluded to this call, but I think it’s kind of symbolic of where we are. Palantir is probably the most highly valued enterprise software data analytics company. You see this, it’s kind of also been captured [in] retail. Some people say this is the GameStop of our era. I just, I totally rebel on that. I think what it really is, this [is a] very very high-growth company. And we really don’t know how to value it. We don’t know how to value it because Alex Carp, uh the CEO, is basically saying, listen, our valuation is confused. We’re the fastest growing, but we’re not really gonna tell you everything that we do. I am a believer in Alex Carp. I ordered his book. I read, I’ve seen his video and I think that what he’s got here is something that’s much more special than Morgan Stanley talks about. It is the early stage of AI, and Alex Carp really gets it. It’s both defense but it’s also consumer, and I’ve growing respect for what the company’s trying to do. And I think that even though it seems hundred times earnings, it may turn out to be much less in terms of the multiple. It is the highest, got the highest so-called Rule of 40, about its growth and margins of any company. And my hat’s off to these guys. You go back and read the last couple of analyst reports. It really is the exciting AI company of our era.

“I think if it weren’t for the fact that you have people like Elon Musk who are aware of what he is doing, Peter Thiel behind the scenes, I would say it’s a negative. But now I think it’s a positive, and the main reason why, is because the Defense Department would be rationalized. They understand the procurement process. They would really take out a lot of the cost of the defense department. Because they think that what’s really at stake is cyber, not necessarily hardware, and I agree with that. I find myself agreeing with Alex again and again. Even as he’s certainly an abrasive personality.”