We recently compiled a list of the 10 Important Stocks that Jim Cramer is Talking About. In this article, we are going to take a look at where Palantir Technologies Inc (NASDAQ:PLTR) stands against the other important stocks that Jim Cramer is talking about.
Jim Cramer in a latest program talked about the latest market volatility and said using too many AI algorithms, data points and correlations could be useful for short-term traders but for investors, these tools could blur your long-term vision.
“I think as investors we’re putting on mental shackles if we behave like this. Remember back in my hedge fund, our whole goal was day trading, was to scalp pennies from the flow. That’s a lot of risk for not much reward. It’s better to zero in on dollars for the big picture. That’s what I want you to do.”
Jim Cramer said that the market is currently oversold and this happened twice before in 2024. These moments, according to Cramer, proved to be some of the best entry points to pile into stocks in hindsight.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article we watched Jim Cramer’s recent programs and listed some of the stocks he commented on. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Palantir Technologies Inc (NASDAQ:PLTR)
Number of Hedge Fund Investors: 43
Jim Cramer in a recent program commented on Palantir’s latest quarterly results:
“Palantir Technologies Inc (NASDAQ:PLTR) reported one of the best quarters of the year, showed fantastic growth and gross margins—growth and gross margins together, that is fabulous. They are excelling with federal contracts, including some important work for the Pentagon. They tend to win almost everything they tender for. They also have a great commercial group, but I like their defense work. It’s what I used to call a total up stock.”
That’s a shift from Cramer’s earlier views, in which he expressed his frustration over the lack of visibility into its business and called PLTR a meme stock.
“Palantir Technologies Inc (NASDAQ:PLTR) is a cold stock. It is a meme stock. It is a stock that has momentum because individual investors keep piling into it. It is not really even a stock; it is just a barometer of enthusiasm for some business that may or may not be doing well. I wish there were more to it,” he said a couple of months back.
What makes Palantir Technologies Inc (NASDAQ:PLTR) one of the top AI stocks? Its technologies are actually solving the problems of businesses. Palantir’s data technology Ontology is solving the famous hallucination problem for AI systems, thanks to the company’s years of experience with military and defense systems. Earlier this year at an event with customers, Palantir Technologies Inc (NASDAQ:PLTR) shared some specifics on how its customers are being able to reduce costs and increase profits due to its artificial intelligence platform (AIP) that was launched about a year ago.
Airbus accelerated A350 production by 33%, BP reduced costs per barrel by 60%, and Jacobs Connect cut power usage by 30%. Panasonic decreased waste by 12%, ESI Group sped up ERP harmonization by 70%, and PG&E reduced transformer ignitions by 65%. Eaton boosted productivity by 25%, while Tyson Foods achieved $200 million in cost savings.
Fidelity Growth Strategies Fund stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q3 2024 investor letter:
“Untimely ownership of Palantir Technologies Inc. (NASDAQ:PLTR) (+47%) also hurt the fund’s relative result. This software and services firm, which operates in both government and commercial segments, saw strong growth during the quarter, largely driven by its “AIP” – or Artificial Intelligence Platform – offering. In early August, the company reported Q2 financial results that mostly met somewhat lofty expectations. We established a sizable holding in Palantir Technologies during the quarter, and at quarter end it was the second-largest position and a slight overweight.”
Overall, PLTR ranks 9th on our list of the important stocks that Jim Cramer is talking about. While we acknowledge the potential of PLTR, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.