Palantir Stock Price Falls Over 10%: Jim Cramer Wonders If It Was A Casualty Of Russell Rebalance Days After Calling It A $200 Stock

Jim Cramer expressed concerns on Monday about Palantir Technologies Inc. PLTR experiencing a significant stock decline, questioning if it was a result of the Russell index rebalance.

What Happened: Palantir's stock price plunged by over 10% on Friday, amid easing tensions in the Middle East and a possible pullback after a recent bull run in the stock.

Despite this drop, Benzinga's Edge Stock Rankings show Palantir's shares rank in the 98th and 97% percentiles on Momentum and Growth, respectively. Click here for deeper insights into the stock.

CNBC's "Mad Money" host Cramer wondered if the fall in Palantir stock could be due to a rebalance by FTSE Russell in its U.S. indices.

Cramer’s post comes after he recently praised Palantir, suggesting it has the potential to be valued at $200 per share, despite its current trading levels.

During his analysis, Cramer also highlighted Palantir’s new nuclear operating system and endorsement from Microsoft Corp. MSFT.

Why It Matters: The stock market often reacts to index rebalances, which can cause volatility. Cramer’s comments come at a time when Palantir’s stock has been performing well, hitting new all-time highs and rising over 500% in the past year.

Despite the recent drop, the stock remains up approximately 93% year-to-date.

Moreover, Palantir’s innovative approach, particularly its Forward Deployed Engineer model, has received praise from industry leaders like Satya Nadella, CEO of Microsoft. Nadella described the model as “fantastic,” emphasizing its unique role in product development rather than traditional consulting.

Price Action: Shares of Palantir closed 10.64% lower on Friday, but rose 2.85% in 0.69% after hours.

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