2. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders In Q4 2024: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is one of Cramer’s top stocks as not a day goes by without him mentioning either the firm or its CEO Alex Karp. He had predicted that the share price would cross the $100 mark before it did so this year. More recently, Cramer has linked Palantir Technologies Inc. (NASDAQ:PLTR)’s future to its ability to influence budget cuts and efficiency at the Pentagon by working with Elon Musk’s DOGE agency. In his latest remarks, Cramer also commented on Palantir Technologies Inc. (NASDAQ:PLTR)’s valuation and the recent share price drop after reports of the firm suffering from the aforementioned budget cuts:
“Oh they’re gonna walk it back. They’re back, walking it back up. It’s not clear by the way whether there is insider selling to a level that they’re talking about. I will point out that the last twenty points were twenty points of I think Alex Karp doing his book tour. And talking about things. And what really got it down was, and I’m not so sure it’s the right thing to do, because we listened to Morgan Brennan’s excellent interview, with Jim Taiclet of Lockheed Martin, he said listen they’re not the enemy, we work with them. But the idea is they really have been the enemy. And I, will point out that they have said over and over again that the concentration of a few defense companies has made it so the Defense Department is ripped off. So by no means do I think that Palantir’s out of the equation as being a fighter of waste. I thought that for sure, that because of their close relationship with Musk, that they would be tapped by DOGE to come in and help. That has not happened.”
“Yes, oh no, Palantir, Karp would tell you, that when you bring them in, they start saving you money and they start doing the right thing. He’s vociferous about it. Uh, we don’t really have the data. We know international’s actually bad for them. And that is a substantial part of their business. So there are things that are not going right for Palantir. But again Karp would tell you that. I think the crucial thing is do they get anointed by DOGE to save money in the Defense Department. Because they actually know where the bodies are because they happen to be at procurement. And that is at the heart of the waste. It’s procurement. And they know it. I mean I’m reading Alex’s book. Actually it’s well-sourced. There’s page after page of actual, in footnotes, it’s not, I read another one that was online, it was really terrible. When I got the copy [inaudible] I sent that note to Alex Karp’s assistant saying thank you very much it’s better than such and such book. But maybe it got sent to me by mistake, I’ve been critical. But they know. And you know what I’m really not critical. If you look at my record about the stock, since fifty I said it was gonna double. And I think it’s going to come back. It’s gonna come back hard.”
“But that’s [the Rule of 40 multiple] a hoot. That’s a hoot multiple! It’s a hoot! . . .That’s a technical term. No, I mean come on, Palantir doesn’t trade on a multiple basis. It trades on, David, the Rule of 40! And it’s got an 81! How dare you challenge this made-up rule of forty that’s so important about the growth rate and the uh, the margin. What do you think? You don’t think that’s important? Are you going to defy the orthodoxy. This is 81, Palantir. Actually, Alex Karp recently called for a Rule of 80, he thinks the forty doesn’t work! And it is the highest, it’s the fastest growing, it’s the way he sells the stock, 81. Not sells the stock personally because I don’t get in the crosshairs of Palantir, they’re, because he’s also the greatest shot, greatest pistol shot in our country. . . And I would not wanna mess with Alex Karp. I don’t wanna be in a, look he went, first of all, he went to Central High in Philadelphia, so he’s scrappy. Look I don’t wanna have . . .bodyguards because of Alex Karp.”
