As the year heads to a close, Palantir Technologies Inc. (NASDAQ:PLTR) has started to once again appear regularly on Jim Cramer’s radar. Throughout the first half of 2025 the CNBC TV host repeatedly praised the firm for its ability to help businesses reduce costs and its potential to help the Trump administration with its cost cutting efforts. More recently, the CNBC TV host made headlines after he set a $250 share price target for the firm. With Palantir’s stock dipping by 11% this week, here’s what Cramer had said about the firm in his morning appearance on the 12th:
“Oh my god. Palantir is going to 250. It’s going to 250. I heard somebody use it as a verb. Last weekend. I am steadfast. And I think Alex Karp is doing remarkable things. And that when you hire them your company just does much better. That there’s real value added with the forward deployment of the [inaudible].
“No. I think it’s a story of people who are saying, listen, like Boeing, we need some help Palantir, come in and help us. Palantir is, your whisperer. Palantir is saying, listen the real action in your company is in this place. And you’re not making that much money in this. And it’s like the old McKinsey. Except for. It’s instinct. It’s instinct.
“Alex Karp and his team are, you bring them in, and I think that they shake up the joint. It’s not like McKinsey where you used to bring them in to be able to say, hey, I’m firing you, cause McKinsey said it’s okay. It’s more like, guys, here’s the worldview. And here’s where we’re going to make a lot of money. And we’re going to do it instantly. And Palantir, I’m not going to say the stock is inexpensive. I am going to say, for its growth rates, for its profits, it’s an amazing company.”
Cramer’s fascination with Palantir is partly due to the firm’s impressive growth and partly due to its ability to make an impact on businesses. On the former front, the stock now trades at a forward P/E ratio of 85.47 and has a Rule of 40 score of a whopping 155%. For the Rule of 40, the score makes Palantir one of the leaders when it comes to high performance and established firms. But has Cramer’s optimism made the firm part of our list of the 10 Blue Chip Stocks Jim Cramer is Crazy About? Take a look, as nearly all stocks in the list are down after the recent stock market selloff!
For Palantir, as is the case with all software as a service (SaaS) firms, the debate is all about artificial intelligence. On this front, the second quarter was a strong set of figures. It saw Palantir’s total contract value (TCV) jump by 49% to $3.37 billion while its US commercial revenue surged by 149% annually. The latter figure is important since for a long period, the debate for the firm has surrounded its ability to shift from government contracts to the private sector. The commercial growth was quite strong since bookings jumped by 153% and the firm had 220 deals worth atleast $1 million.
The importance of Palantir’s AIP platform to AI and token efficiency is integral, as CTO Shyam Sankar outlined:
“AIP gives you the control plane to trade cost, performance, and latency against each other, and to decide where you run your weights versus theirs, workflow by workflow, continuously. You can have a continuous improvement cycle that compounds your alpha into your weights. AIP was built for this. We continue to see that our product is winning head-to-head. The others are focused on productivity. We are laser-focused on turning tokens into real economic value for our customers. The reality is that the market has created far more intelligence than it has converted into value.”
Interested in AI, and more importantly, agentic AI stocks? Check out 11 Best Agentic AI Stocks to Buy Right Now – a list which also includes Palantir.
Yet, while Palantir’s US commercial TCV grew by 153%, commercial customers grew by a still impressive 35% to indicate that the growth was driven by penetration in existing customers rather than new customer additions. Not to mention, revenue remained concentrated among a handful of customers. In the second quarter, the firm’s top 20 customers accounted for 40% of Palantir’s trailing twelve month revenue. Michael Burry of Big Short fame has also discussed the customer concentration and pointed out that 27% of the firm’s $1.49 billion in accounts receivables come from a single customer.
Overall, not only does the forward P/E multiple peg higher growth than the broader market, but it also pencils in a 1% yield to hint that investors are positioned for long term growth. Short interest as a percentage of float is 2.6%, while 86 funds tracked by Insider Monkey had disclosed a stake in the firm in the second quarter.This article is originally published at Insider Monkey.This article is originally published at Insider Monkey.This article is originally published at Insider Monkey.
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This article is originally published at Insider Monkey.
