Jim Cramer Unimpressed By Palantir Earnings: Why He Says The Software Stock Is 'Doing So Poorly'

The overall markets continue to decline as earnings season unfolds.

Monday on CNBC's "Squawk On The Street," Jim Cramer pointed out a concerning commonality among smaller companies that have reported recently.

"The Nasdaq is filled with companies that are under their cash position or are in danger of going through their cash position," Cramer said.

What To Know: It's not just the Nasdaq names, but several smaller companies across the broader markets, he said, adding that Palantir Technologies Inc PLTR is a perfect example.

"Dramatic slowing, dramatic decline on their cash flow and they have enough, but why is $8 (per share) the right level," Cramer said. 

Palantir reported adjusted free cash flow of $29.79 million in the first quarter, which was down from free cash flow of $104.2 million in the fourth quarter of 2021. The company also guided for declining adjusted operating margins of 20% in the second quarter.

Related Link: Why Palantir Technologies Shares Are Diving

"They have adjusted free cash flow of only $30 million and they're doing so poorly in terms of order growth," Cramer said. 

"I don't want to dwell on them because that's kind of a stock that you would've never really heard of if it weren't for Cathie Wood."

Palantir CEO Alex Karp maintains expectations for annual revenue growth of 30% or greater through 2025.

PLTR Price Action: Palantir has traded as high as $29.29 over a 52-week period. It's making new 52-week lows on Monday.

The stock was down 22.2% at $7.38 Monday afternoon.

Photo: Cory Doctorow from Flickr.