We recently published a list of Jim Cramer Discusses These 12 Stocks & Trump DOJ’s Action Against Health Insurance Companies. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other stocks that Jim Cramer discusses with insights on Trump DOJ’s action against health insurance companies.
In his recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on a report in the Wall Street Journal suggesting that the Trump administration’s Department of Justice was aiming to take on one of the largest healthcare insurers in America. While the firm’s shares dropped by 11% on the news, Cramer remained skeptical.
He started out by commenting that “the government has historically not been able to take on this group. They haven’t really taken on the middle-man either. Look I mean we have strong corporations in our country.” Cramer believes that instead of suing the firm, a better approach would be legislation.
“You’re gonna need legislation,” he outlined. “I don’t think you’re going to be able to do anything with the Justice Department,” believes Cramer. He added that “when you have these lawsuits it tends not to bring about any sort of practice. Look, I’m not being cynical. I know that there are people that just say how can you not, how can you not think that this is gonna break up everything?”
While President Trump’s bellicose approach with his administration has turned heads, Cramer shared that little will change at the Justice Department. According to him: “I think that this DOJ is like other DOJs, they’re just not powerful enough to take these companies on. They lose.”
As an example, Cramer pointed to the government’s lawsuits against opioid companies. He shared that while the companies “ended up having to pay,” they were able to continue operating as “nobody got shut down, nobody went to jail, nobody, again this is civil.” Subsequently, Cramer wondered whether “there are certain, companies in the healthcare industry that continue to win, and win, and win. And the initial reaction tends to be an overreaction.”
When told about Bill Ackman’s comments about avoiding the healthcare benefits stock stock and that it was a mental short, he commented:
“Well, again, legislation can do something. This idea of, of creating policy through the Justice Department has not worked. The Justice Department has [inaudible] not been able to create changes. But Congress can. And that’s what has to happen. Look, do I agree with Ackman? I think, I favor universal healthcare [laughs] so I’m way off the reservation. But I do think that if Congress gets involved, as it did under, with Obamacare, they had a shot. Right at the end it was, it was destroyed by the Republican Party. But that’s, that’s what happens.”
Cramer added: “The Justice Department doesn’t do it. . . .Look at what happened to Microsoft, every time the Justice Department really gears up, doesn’t work. Doesn’t change things.”
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 21st.
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).
Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders In Q4 2024: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is one of Cramer’s top stocks as not a day goes by without him mentioning either the firm or its CEO Alex Karp. He had predicted that the share price would cross the $100 mark before it did so this year. More recently, Cramer has linked Palantir Technologies Inc. (NASDAQ:PLTR)’s future to its ability to influence budget cuts and efficiency at the Pentagon by working with Elon Musk’s DOGE agency. In his latest remarks, Cramer also commented on Palantir Technologies Inc. (NASDAQ:PLTR)’s valuation and the recent share price drop after reports of the firm suffering from the aforementioned budget cuts:
“Oh they’re gonna walk it back. They’re back, walking it back up. It’s not clear by the way whether there is insider selling to a level that they’re talking about. I will point out that the last twenty points were twenty points of I think Alex Karp doing his book tour. And talking about things. And what really got it down was, and I’m not so sure it’s the right thing to do, because we listened to Morgan Brennan’s excellent interview, with Jim Taiclet of Lockheed Martin, he said listen they’re not the enemy, we work with them. But the idea is they really have been the enemy. And I, will point out that they have said over and over again that the concentration of a few defense companies has made it so the Defense Department is ripped off. So by no means do I think that Palantir’s out of the equation as being a fighter of waste. I thought that for sure, that because of their close relationship with Musk, that they would be tapped by DOGE to come in and help. That has not happened.”
“Yes, oh no, Palantir, Karp would tell you, that when you bring them in, they start saving you money and they start doing the right thing. He’s vociferous about it. Uh, we don’t really have the data. We know international’s actually bad for them. And that is a substantial part of their business. So there are things that are not going right for Palantir. But again Karp would tell you that. I think the crucial thing is do they get anointed by DOGE to save money in the Defense Department. Because they actually know where the bodies are because they happen to be at procurement. And that is at the heart of the waste. It’s procurement. And they know it. I mean I’m reading Alex’s book. Actually it’s well-sourced. There’s page after page of actual, in footnotes, it’s not, I read another one that was online, it was really terrible. When I got the copy [inaudible] I sent that note to Alex Karp’s assistant saying thank you very much it’s better than such and such book. But maybe it got sent to me by mistake, I’ve been critical. But they know. And you know what I’m really not critical. If you look at my record about the stock, since fifty I said it was gonna double. And I think it’s going to come back. It’s gonna come back hard.”
“But that’s [the Rule of 40 multiple] a hoot. That’s a hoot multiple! It’s a hoot! . . .That’s a technical term. No, I mean come on, Palantir doesn’t trade on a multiple basis. It trades on, David, the Rule of 40! And it’s got an 81! How dare you challenge this made-up rule of forty that’s so important about the growth rate and the uh, the margin. What do you think? You don’t think that’s important? Are you going to defy the orthodoxy. This is 81, Palantir. Actually, Alex Karp recently called for a Rule of 80, he thinks the forty doesn’t work! And it is the highest, it’s the fastest growing, it’s the way he sells the stock, 81. Not sells the stock personally because I don’t get in the crosshairs of Palantir, they’re, because he’s also the greatest shot, greatest pistol shot in our country. . . And I would not wanna mess with Alex Karp. I don’t wanna be in a, look he went, first of all, he went to Central High in Philadelphia, so he’s scrappy. Look I don’t wanna have . . .bodyguards because of Alex Karp.”
Overall, PLTR ranks 2nd on our list of stocks that Jim Cramer discusses with insights on Trump DOJ’s action against health insurance companies. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
