Jim Cramer on Netflix and Other Stocks

13. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 44

Palantir Technologies Inc. (NYSE:PLTR) specializes in developing and deploying advanced software platforms primarily for the intelligence community, focusing on counterterrorism investigations and operations. When Cramer was asked about the stock, he highlighted that it is owned and loved by individuals. He advised staying long and observing what comes next.

“Here’s the way I feel about Palantir. It’s a cold stock. Journalists called it that. I didn’t have to do that. But here’s what you know. This is owned by individuals. They love it, they walk it up every time it gets hit, they’re buyers. These things happen periodically. It happens to be a good company. I wouldn’t buy it up here, but the cold buyers can’t get enough and they take it higher seemingly every day. Stay long and see what happens.”

Over the past year, Palantir Technologies (NYSE:PLTR) has reported significant financial progress. In the second quarter, the company experienced a significant increase in its customer base, with a growth rate of 41%. Alongside this expansion, the average expenditure per customer rose by 14%, contributing to a revenue increase of 27%, which amounted to $678 million.

It marked the fourth consecutive quarter of accelerating revenue growth. Additionally, non-GAAP earnings per diluted share surged by 80%, reaching $0.09. The U.S. commercial segment has also shown remarkable performance, with revenue soaring by 55% year-over-year in the last quarter. The growth can be attributed in part to its boot camps, which are five-day sessions designed to educate potential customers on effectively utilizing artificial intelligence in critical operations. They have proven successful, as evidenced by an 83% increase in U.S. commercial customers during the second quarter.

In light of these positive developments, Palantir Technologies (NYSE:PLTR) management has revised its full-year guidance, now projecting a revenue increase of 23% for 2024, up from an earlier forecast of 21%. The adjustment reflects strong execution and performance surrounding the company’s Artificial Intelligence Platform (AIP), which has positively influenced its revenue trajectory.