Zinger Key Points
- Jim Cramer once said Palantir was just a "series of press releases" made up for the "memesters."
- A month later, Cramer applauded the company and warned Russia about its advanced AI technology.
Palantir Technologies Inc PLTR shares climbed 3.6% on Thursday after reports from the previous day that co-founder and chairman Peter Thiel has completed selling the maximum number of shares allowed under his trading plan set in May, according to Barron's.
The company’s recent success brings to mind Jim Cramer's evolving stance on Palantir. He once dismissed it as not even a “real company.” Less than a month later, he completely changed his mind.
What Happened: Palantir announced an expansion of its partnership with Microsoft Corp MSFT in early 2023. Following the announcement, Cramer said the AI-focused data software company was really just a “series of press releases” made up for the “memesters.”
He complained about Palantir CEO Alex Karp’s use of foul language on conference calls and said the company would be a lot more legitimate if Karp would “stop dropping F-bombs.”
About a month later, Palantir reported strong quarterly results and Cramer quickly changed his mind on the Karp-led company.
“I’ve been very critical of Alex Karp and not just because I thought it was totally unnecessary for him to curse on the conference call, but they had been losing money hand over fist,” Cramer said at the time on CNBC’s “Squawk On The Street.”
“They made money, $17 million, and they actually forecast GAAP positive, and what they did is pivot.”
See Also: Jim Cramer: This Utilities Stock Is A Buy, Calls Wells Fargo A ‘Winner’
Previously, Palantir didn’t care about making money and the company was all about “world domination,” Cramer said: “They did the pivot that we have all been hoping for. It was a clear pivot and I think the stock should be up.”
In a letter to shareholders, Karp said he expected Palantir to remain profitable in each quarter through the end of 2023. The stock was up more than 20% on the heels of the company’s bullish forecast.
Cramer noted that he plans to take a closer look at the company now that it’s actually making money. He also expressed interest in what Palantir is doing for Ukraine in the ongoing war with Russia before highlighting new AI technology that allows Palantir to “control the battlefield”:
“Look out, Russia,” Cramer said.
On a conference call with investors and analysts, Palantir said Ukrainian forces have been unleashing the company’s AI products with incredible speed.
“The future has already arrived,” the company stated.
PLTR Price Action: When Cramer turned positive on Palantir in early 2023, the stock was trading below $10. Palantir shares were up 3.6%, trading at $38.87 at the time of publication Thursday, according to Benzinga Pro.
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Photo: Flickr/Shutterstock.
Some elements of this story were previously reported by Benzinga and it has been updated.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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