Jim Cramer Was Focused on These 13 Stocks

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9. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 78

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer was focused on. Cramer commented that it is a speculative stock because it has a very high valuation. He stated:

“What [are] examples of what speculation means? Let me give you some categories. Alright, first, there are the richly valued stocks with real earnings like Palantir. Here’s a company that clients swear by because it aggregates data, uses artificial intelligence to find patterns that can turbocharge sales and earnings. People love this company. It’s also got a cybersecurity aspect. Palantir’s profitable, but the stock now sells for 277 times this year’s projected earnings. That’s why it’s speculative.”

Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms that help organizations integrate, analyze, and act on complex data for intelligence, security, and enterprise operations. During the September 9 episode, Cramer said that the stock can “supercharge your entire returns” for a long time, as he said:

“Everything changed when the stock of Palantir arrived. The defense-oriented software company that relies heavily on artificial intelligence saw its stock rally from… $35 a year ago to $162 today on the strength of a series of very strong reports that vastly exceeded projections. Real stuff. I’ve been around for a while, and… it really isn’t easy to spot new patterns, but as I say in How to Make Money in Any Market, the speculative plays do deserve a place in your portfolio. One, Palantir, which I continue to say will go above $200, can supercharge your entire returns and not just for days or months, but even for years.

When I saw the saga of Palantir unfold, I realized there’d been a sea change in this market. A new cohort of investors welcomes stocks with fantastic stories, and they keep buying those stocks for a long time after the news broke. Historically, good news would produce a ripple in a stock, but now it’s a flood, and it’s almost like an endless flood.”

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