We recently published an article titled Jim Cramer Discusses These 12 Stocks & Says Late Selloffs Are Deliberate. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against the other stocks.
In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on a late-hours market selloff. Cramer shared that he was “tired of it [the selloff]. I’m tired because it just seems totally artificial. I mean someone comes in and blitzes the market in the last twenty minutes.” He believes “There’s no reason to do that other than you wanna take it down. I don’t know why, I’ve seen this periodically in my career. These are, what I regard as being, deliberate. Not manipulation, because that’s too strong.”
The selloffs are “a deliberate attempt to send the market down because the market can’t handle the level of selling,” he added. He added that since “buybacks stop at three thirty. So if you really want to get a good price you wouldn’t just come there and jam it.” Cramer posited that the selloff was done by “someone who wants the market down. . . .You know, David, this is no sin to point it out. There are a lot of people, let’s say someone wanted the market up. You know, they come in at the end of the quarter and take it up. Somebody wanted the market down. It made no sense to come in. This is the third day that they blitzed the close.”
When asked whether we’ll ever find out who was behind the selloff, the CNBC TV show host stated: “Well no, and you never will know.” Cramer’s co-host David Faber also wondered about the role of algorithmic trading in the markets. Cramer believes that such traders “think they’re going to make money. They’re not doing it.”
The conversation then shifted to the Magnificent 7 stocks which have been underperforming lately. According to Cramer:
“Yeah but Morgan Stanley’s saying they’re underweight in these big caps. But then again if you were actual weight in these big caps, you’d have thirty percent NASDAQ, you know and it would be mostly Mag 7. So to be underweight may not be as important. But this is what people are talking about.”
Another topic that he frequently discusses on his show is Elon Musk and DOGE. On this front, while some judges might have granted government employees reprieve, Cramer believes that it can be short-lived. He shared:
“Well they got a lot of Democratic judge[s] who are probably not in the favor of this thing. You got the right judge, you get in Supreme Court, they’re gonna win. I mean that’s the whole point. But I would say that Bank of America’s finally addressed it, really good fact. Yes. . . USAID, that’s all a dry run. It’s a dry run for the big guys. And the big guys are the Department of Defense and Medicaid, and here they come. They’re going.”
As for the spending cuts, he commented on a recent media article that “says is, alright, they did the little guys. Now, here comes the big guys. And we all would say that defense has too much spending. And by the way, the army has the fewest number of recruits since the war. So, I mean, you can say that it’s hardware but it is important to point out that the army is having a hard time getting . . .”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on February 25th.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders In Q4 2024: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is one of Cramer’s most frequently discussed and favorite stocks. It’s nearly a regular appearance on his show and has generated mostly positive sentiment from the TV show host. Cramer believes that Palantir Technologies Inc. (NASDAQ:PLTR) can play a key role in Elon Musk’s efforts to reduce government waste through DOGE. He is also a fan of the firm’s CEO Alex Karp, but has pointed out that Palantir Technologies Inc. (NASDAQ:PLTR)’s international business isn’t doing so well. Here are his latest comments:
“I want Karp in there. I want him to stop the book tour. I want him to stop using the f-word in conference calls.”
“I’m ready for him. I’m from Philly. Mr. Tough Guy. Mr. Being Able To Use A Gun And Shoot. Look, you know what, if you can shoot a gun at two hundred and seventy yards, look why do I wanna do that.”
“I mean Karp can shoot anything from two hundred and eight yards, do I care?”
“I think that maybe this idea about DOGE, where they’re going to go and Palantir, it matters. I think that Palantir got so hot it had that parabolic move and then it had the endless book tour. And people kind of wanted Alex to get back to. They actually have a lot of people more than Alex, I’m not kidding, I happen to like a lot of people there. And their work on the Defense Department and being able to dismantle the military industrial complex, would make Eisenhower really proud. So they’re a very real company and I think if they got the chance to be able to undo the military industrial complex it’d be great for our country.”
Overall PLTR ranks 1st on our list of the stocks Jim Cramer recently discussed. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.