We recently published a list of Jim Cramer Warns of a 36% Market Drop & Reviews These 9 Key Stocks. In this article, we are going to take a look at where Palantir Technologies Inc. (NYSE:PLTR) stands against other stocks Jim Cramer discusses.
In his appearance on CNBC’s Squawk on the Street on Monday, Jim Cramer discussed the reasons behind the recent market turmoil. Cramer emphasized that markets haven’t yet priced in the full brunt of the policies that are coming out of the White House. With Peter Navarro’s anti-China agenda now setting the tone, Cramer warned that corporate earnings and valuations are being fundamentally redefined, and made a bold prediction at where the S&P 500 index could potentially find its bottom:
“I think that the way you want to look at it is what multiple do you put on the new earnings estimates for the S&P. And I think that the S&P people thought it would be 270 to 280; now it’s going to be 230. I think you have to put a worst case, 14 times, because markets have tended to bottom at 14 times earnings and that gives you a 36% downside from here. […] We’re still at 20, that’s the problem. You take it down to 14, where it’s historically bottom, you multiply it by 230, and you get S&P 3220, and that should be your bottom.”
READ ALSO: Jim Cramer Got These 10 Stocks All Wrong and Jim Cramer Nailed These 11 Stock Picks.
Cramer then painted a picture of the economic path ahead, noting that the current President’s stance is no longer about deal-making but about generating revenue. He warned viewers that without a change in course, the economy could be heading straight toward a recession:
“You’ve got this dichotomy. I mean, this is a man who’s not talking about negotiating. He’s talking about raising a lot of revenue. In the interim, we’ve got inflation because there’s bargaining, but everybody has to pay higher prices and ultimately a recession if there is not some sort of accommodation made.”
While discussing if the current environment is reminiscent of 2007, Cramer rejected the comparison, but acknowledged that capital is fleeing the US markets which might indicate a loss of confidence in American economic leadership:
“Look, there are signs that the U.S. has lost its supremacy. I want to take that off the table if we decide to change our view. See, let’s say I tell people, I think it’s time to really bail. It’s really dangerous. And then the market drops 50 percent. And then the president switches. Can I tell people, oh, now it’s fine, all clear? No, that does not work. It’s not 2007. And by the way, 2007, it took six years to get back. Eighteen months is the average of the last other five bear markets. Eighteen months. “
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on April 7th.
For these stocks, we also mentioned the number of hedge fund investors, as of Q4 2024. 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).
Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund holders: 64
Palantir Technologies Inc. (NYSE:PLTR) builds software platforms for big data analytics, primarily serving government and large commercial clients. Cramer made a quick remark about the stock, indicating that despite the current volatility and his own bearish predictions, he’s not recommending his viewers to sell the stock:
“But then I don’t want anybody to think that I think it’s time to sell Palantir. Palantir can go to 40, I don’t know.”
Jim Cramer has always been a fan of Palantir Technologies Inc. (NYSE:PLTR). When asked by a caller if the stock was worth buying now, he replied with:
“Yes, it is. Palantir’s a winner and I’m telling you, we’re going to see what they do with the defense department. I’m telling you they’re going to help… the procurement process. And I’m a believer in Palantir, even if they don’t believe in me. I don’t care.”
Overall, PLTR ranks 6th on our list of stocks Jim Cramer discusses. 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
