Opinions Jim Cramer - Mad Money
Palantir TechnologiesPLTRDON'T BUYJan 06, 2025
Jim Cramer - Mad MoneyStock price when the opinion was issued
As of Jun 10, 2026. Market Open.
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Executing well. Increasingly employing AI in day-to-day operations. Growing use in government/defense plus strong adoption by commercial customers.
Proving it can turn demand into profit and cashflow. Revenue grew an exceptional 85% last quarter. Valuation remains her biggest concern (roughly 40x next year's sales), leaving little room for disappointment/error. Be cautious.
The only software name he owns. Beaten down because it's put in the software bucket, plus relatively expensive compared to peers. Sometimes you have to pay up for a best-in-class asset. Last quarter's numbers blew it out of the water. Growing 80% YOY, very profitable.
Accelerating commercial revenue on top of government contracts. Helping companies adopt AI.
Nick Mersch, CFA
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Premium contentLast year, the company generated 4.48 B USD, the most of which — 2.40 B USD — came from its top-performing segment, Government, compared to 1.57 B USD the previous year. The greatest contribution came from United States, which accounted for 3.32 B USD last year, with 1.90 B USD the year before. Social media mentions are up 325% in the past 24h.
Only drawback is that the stock's very expensive. So there's no good valuation support, and she doesn't own it.
But nothing really wrong with the story, so she wouldn't recommend a Sell. If you liked it a month ago, nothing has changed. Pretty well positioned on defense. Fundamentals are in favour of it, so she'd hold.
For these high-beta stocks, you can't be getting nervous about them. If you don't want to stomach the high volatility, look for a more diversified solution or for a stock that's less volatile.
Shares have jumped nearly 50% since the election, which you can't dismiss, but you can't justify its PE now. That won't stop shares from climbing higher though, because PLTR is tight with Trump. According to a Palantir report last October, there used to be 51 defence contractors, but after merging there are now only five major companies. Rather than innovative, these companies are gaming government contracts. Trump appointed Elon Musk to the new Efficency Dept. and Musk is tight with the PLTR co-founder who is also a big Trump donor. There's talk of radically changing the Pentagon's procurement process, which could stir serious problems with defence contractors. This may be why defense stocks have fallen since the election. Then, Musk openly criticized Lockheed Martin, which stirred these fears. For pure defense stocks, wait and see. This sector is untouchable.