Jim Cramer’s Latest Game Plan: 15 Stocks to Watch

10. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 44

During Friday’s Mad Money episode, Cramer talked about Palantir Technologies Inc. (NYSE:PLTR), calling it a cult stock. Here’s what he had to say:

“Palantir stock is one of the best performers of the S&P 500 this year. The cult members who own the stock, they seem eager to push it up to exceed the 2024 percentage gain of Nvidia. Right now, Nvidia’s up 173%, Palantir’s 144%, so it will require some heavy lifting. Now they could pull it off. If the stock gets hit on its numbers, I want you to buy some… It’s insane to watch these buyers by the way… who don’t really care how company’s doing. They just buy the stock because they want it to go higher.”

Palantir (NYSE:PLTR) is a leading developer of software platforms focused on complex data integration and decision-making, serving the intelligence and government sectors and also commercial clients. The company’s product suite includes platforms such as Gotham, Foundry, Apollo, and its enhanced Artificial Intelligence Platform (AIP), which are designed to help organizations manage and make sense of vast amounts of data. On September 23, the company achieved a significant milestone when it joined the S&P 500 index.

The company is earning a strong reputation for its ability to address intricate data management needs across both government and commercial domains, providing solutions that enable better decision-making and operational efficiency. In recent quarters, it has placed significant emphasis on expanding its AI offerings. This has proven to be a key driver for the company, particularly in the U.S. market.

Palantir’s (NYSE:PLTR) focus on AI has been central to its strong performance in the third quarter and the results were reported on November 4. The company reported Q3 revenue of $726 million, surpassing its initial guidance of $703 million. Adjusted EPS for the quarter was $0.10, outperforming the $0.09 consensus estimate.

The company ended the quarter with $4.6 billion in cash, cash equivalents, and short-term investments, with no long-term debt. In a statement accompanying the earnings report, CEO Alex Karp highlighted the company’s success, particularly in the AI sector, stating that the demand for AI is “unrelenting” and that the U.S. is at the heart of an AI revolution.

He noted that the company aims to empower those organizations that lead this transformation, positioning the company as a key player in a world increasingly divided between those who can harness AI and those who cannot.