4. 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.”
