We recently published a list of Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other NASDAQ 100 stocks that Jim Cramer discussed recently.
Jim Cramer, the host of Mad Money, recently shared his perspective on the stock market, especially reflecting on the events of 2024. He emphasized that years like 2024 don’t come around often, where everything feels so clear and the winners are so apparent. According to Cramer, if investors tried to get too creative or overcomplicate their strategies, they likely missed out on the obvious winners.
“If you tried to get creative, you tried to get clever, you missed out on some truly idiot-proof winners. The losers on the other hand, well, they were not as easy to spot because in many cases they were the market’s former winners, even if they long ago lost their way.”
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As part of his annual analysis on Mad Money, Cramer examined the top and bottom performers of the Nasdaq 100 in 2024, offering insights into what worked and what didn’t. He reviewed how, in many instances, investors tend to become frustrated with stocks that are overhyped, knowing deep down that eventually, something better will come along. He likened these overly loved stocks to a “mouse trap,” where the price could only go down from such lofty heights, warning that many investors would regret not jumping off the metaphorical spaceship before the crash.
Cramer shared his thoughts on the five best performers in the NASDAQ 100 for 2024, calling it a “real good collection of winners” and expressing a genuine fondness for these stocks. He also noted that, while the Nasdaq 100 losers may have appeared to have suffered dramatic declines, the reality was more nuanced.
“The Nasdaq 100 losers, though they aren’t so horrible as the declines would make you think, but they got clobbered because they were emblematic of golden calves, worshipped for a long time before being revealed as not so special after all.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. 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).
Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 43
While Cramer has previously called Palantir Technologies Inc. (NASDAQ:PLTR) a “cult stock”, more recently, he has been highlighting the rapid growth of the company and its numerous government projects. In the recent episode of Mad Money, calling the stock a winner in 2024, he commented:
“Most obvious winner for 2024, Palantir, the defense software company trying to revolutionize the way the Pentagon works. Its CEO Alex Karp is a brilliant bad boy Smash Mouth Philly guy who’s like a meaner version of Elon Musk and probably threw snowballs if not batteries at Santa Claus from the lower level of the link.
I think Palantir, up 340% for 2024, can have another breakout year because the Musk DOGE unit, Department of Government Efficiency, will work hand in glove with these guys. They’re all part of the same circle. They understand the procurement process. They will win a lot of business in 2025. Palantir, yes.”
Palantir (NASDAQ:PLTR) is a software company that focuses on developing advanced data platforms, primarily serving government agencies with tools designed for data analysis and decision-making. The company has become well known for its ability to assist in large-scale data operations, often providing solutions to complex government challenges. In a recent interview, Palantir CEO, Alex Karp stressed the need for tech-government collaboration, especially regarding the AI arms race, and expressed optimism about the incoming administration’s potential to tackle government challenges.
Wedbush Securities analyst Daniel Ives has highlighted an opportunity for Palantir to address inefficiencies within the U.S. government, particularly within the Washington, D.C. area. Ives believes that the company could capitalize on these inefficiencies to make significant progress in its operations. In addition, Elon Musk and Vivek Ramaswamy have been involved in the formation of the Department of Government Efficiency (DOGE), which aims to streamline government operations.
Palantir (NASDAQ:PLTR) co-founder Joe Lonsdale was reportedly also involved in DOGE’s early planning stages. CEO Alex Karp has expressed his full support for DOGE and its co-leads, including Musk. In a December interview with Fox News, Karp aligned himself with DOGE’s efforts for government reform and commended Musk’s leadership in this initiative.
Overall, PLTR ranks 8th on our list of NASDAQ 100 stocks that Jim Cramer discussed recently. 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 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.
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Disclosure: None. This article is originally published at Insider Monkey.
