We recently compiled a list of the Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024. In this article, we are going to take a look at where Palantir Technologies Inc. (NYSE:PLTR) stands against the other companies that hit $100 billion in market cap in 2024.
Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.
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He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.
Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:
“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”
Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.
“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer manipulating a vast network of code on virtual monitors.
Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 43
Cramer noted that Palantir Technologies Inc. (NYSE:PLTR) is favored due to its high-profile government contracts and the buyers’ belief in it to reshape the U.S. defense budget.
“Next up is an enterprise software company, Palantir, which exploded on the scene this year with some big contracts and some big growth. Palantir came public via direct listing in 2020. It kind of hung out doing nothing until its sales finally took off and then man, this thing was just a rocket ship. Palantir is the brains behind much of the military that we don’t know about.
They’ve been rallying against the big five military defense contractors. They don’t like that gang. They think it frustrates everybody else. The firm uses advanced data analysis and artificial intelligence to help the Pentagon see patterns, process data… Again though, I think Palantir’s loved because it’s trying to upend the defense department, potentially saving tens of billions of dollars and saving the lives of those who might be on the front line such as precious pilots in very expensive jets. Buyers think that Palantir will reinvent our entire defense budget, which is entirely possible because these guys are tight with President-elect Trump.”
Palantir (NYSE:PLTR) is a developer of advanced software platforms and is known for its work with government agencies. Earlier in the year, it secured a $480 million contract with the U.S. Department of Defense to develop the Maven Smart System, set to be completed by 2029. In November, it also partnered with Anthropic and AWS to offer U.S. agencies access to Claude AI models, enhancing data processing and decision-making capabilities.
More recently, on December 9, the company expanded its contract with the U.S. Special Operations Command (USSOCOM) with a one-year, $36.8 million deal to support the Mission Command System (MCS) and enhance technology for U.S. Special Operations Forces globally. The deal includes deploying AI capabilities and fast-tracking software deployment using Palantir’s Ontology Software Development Kit.
Additionally, on December 6, Palantir (NYSE:PLTR) announced that the company and Anduril Industries are launching a consortium to help the U.S. lead in artificial intelligence, focusing on developing infrastructure to transform AI advancements into next-generation military and security capabilities.
The partnership aims to address two main challenges: data readiness and processing data at scale. To tackle the latter, they will use Palantir’s AI Platform (AIP) for cloud-based data management and AI development, meeting both commercial and national security needs.
Overall PLTR ranks 17th on our list of the companies that hit $100 billion in market cap in 2024 according to Jim Cramer. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
