During the August 24 Mad Money lightning round, when a caller inquired about Palantir Technologies Inc. (NASDAQ:PLTR), Cramer responded:
Okay, now here’s the issue with Palantir. I have been committed to saying it was going to go up to $250, at least $200. I’m not backing away. They’ve had an amazing quarter. It’s a great spec, but it is a spec. And I know people pilloried me when I came all the way back. But I stuck with it, and I’m not leaving it. I think it’s real good. What can I say?
Cramer’s unwavering stance on the company builds on a conviction he defended through summer market volatility. Following a dramatic weekly rally earlier in August where the stock jumped 44.1% in under a week, a caller during the August 11 episode highlighted its lack of direct enterprise software competition, and Cramer responded:
I got to tell you, the litany is true. I have been saying that Palantir, remember, I was the guy who was on the hook for the $200 going to $250, but they’re making me proud, and are they my buddy, pal, friends? Probably not… I will say they had a great quarter and they deserve a little bit more. They deserve some of the love.
Artificial Intelligence Demand and Record Revenue Growth
Palantir Technologies Inc. (NASDAQ:PLTR) presented a stellar second-quarter earnings report. Total revenue surged 94% year-over-year to $1.94 billion, comfortably beating Wall Street consensus estimates by $130 million. Growth was heavily powered by the U.S. commercial segment, which skyrocketed 149% year-over-year to $764 million as enterprise adoption of the Artificial Intelligence Platform (AIP) accelerated. Non-GAAP diluted earnings per share reached $0.41, topping expectations by $0.06. The management raised full-year 2026 revenue guidance to approximately $8.15 billion, solidifying Palantir Technologies Inc.’s (NASDAQ:PLTR) status as a dominant software player in enterprise and government AI sovereignty deployments.
In addition, Phillip Securities analyst Alif Fahmi maintained a Buy rating on August 11 while raising the firm’s DCF-based price target to $215 from $202. At the same time, the firm lifted its fiscal year 2026 revenue and profit after tax and minority interests forecasts by 6%, pointing to the company’s proprietary ontology moat, accelerating enterprise AI adoption through AIP, and a strengthening position within the U.S. government.
Rich Valuation Multiples and Execution Expectations
Despite the fundamental blowout, the bear case centers squarely on valuation and Palantir Technologies Inc.’s (NASDAQ:PLTR) status as a high-multiple speculative play, echoing Cramer’s description of the stock as a “great spec.” Trading at a forward price-to-earnings ratio of 108.7x, the company is priced for perfection. It could be argued that even with 94% top-line growth and adjusted operating margins near 62%, sustaining such high multiples requires flawless execution moving forward. Any slight deceleration in enterprise contract closures or enterprise spending growth could trigger sharp near-term pullbacks as the market recalibrates those price targets.
Tracking Smart Money and Short Interest
According to Insider Monkey’s database tracking over 1,000 elite hedge funds, institutional participation shifted slightly in the second quarter. The company’s stock was held by 86 hedge funds at the end of Q2, down from 96 funds in the prior quarter. Meanwhile, short interest stands at 3.17% of the public float. As per Insider Monkey, Arrowstreet Capital increased its stake massively for the second quarter in a row. The firm was the most significant shareholder with around 20.5 million shares and had increased its position by 278% in the prior quarter.
Palantir Technologies Inc. (NASDAQ:PLTR) continues to polarize Wall Street between its hyper-growth fundamentals and rich valuation premiums. As Cramer’s ongoing defense highlights, riding out the volatility requires conviction in the fundamental software moat, even if the stock commands a speculative multiple.
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