CNBC host Jim Cramer has publicly reaffirmed his bullish stance on Palantir Technologies Inc. (NASDAQ: PLTR), setting a price target of $250 for the data analytics firm.
Cramer made the declaration in a tweet directed at the company and its CEO, writing: “@Palantir, i am sticking by my $250 target, @Alex Karp.”
The announcement came following a direct interview with CEO Alex Karp, signaling Cramer’s continued confidence in the company’s long-term trajectory.
Cramer has been a vocal supporter of Palantir for some time, having previously predicted the stock would cross both the $100 and $150 marks before those milestones were reached.
The central question surrounding Palantir remains whether the company’s growth rate can justify its current valuation, which sits at a forward price-to-earnings multiple of 78.
Shares have been relatively flat over the past year, yet the company has continued to deliver strong underlying financial results across multiple business segments.
In its second quarter earnings, Palantir reported revenue, operating income, and net income growth of 93%, 47%, and 225% respectively, reflecting broad-based operational momentum.
Breaking down revenue by segment, US Commercial Revenue grew 149%, US Government Revenue rose 90%, International Commercial Revenue climbed 26%, and International Government Revenue increased 42%.
The company’s Rule of 40 score, a metric considered strong at 40% or above, reached 155%, while net dollar retention stood at 157%, meaning existing customers spent 57% more than the prior year.
Palantir’s Artificial Intelligence Platform bootcamp, which allows businesses to build AI tools using in-house data within one to five days, has been a key driver of domestic commercial growth.
International growth, however, has remained comparatively subdued, leaving analysts and investors questioning when that segment might accelerate to match domestic performance.
Investor Michael Burry, known for his role in predicting the 2008 financial crisis as depicted in “The Big Short,” has flagged that Palantir’s accounts receivable grew to $1.49 billion in Q2, with 27% of that sum tied to a single customer.
Burry has also raised concerns that Palantir’s deferred revenue to revenue ratio appears low relative to software-as-a-service peers, a point that has added fuel to valuation debates.
Palantir’s forward P/E ratio of 78 stands in stark contrast to that of ServiceNow, which trades at a forward multiple of 27.25, highlighting how aggressively the market has priced in future growth.
Hedge fund sentiment has shown some softening, with 86 funds holding a stake in Q2, down from 96 in Q1, according to data from Insider Monkey.
Notable exits during the second quarter included Two Sigma Advisors, Bridgewater Associates, and Point72 Asset Management, all of which reduced or eliminated their positions in the company.
Short interest as a percentage of float currently sits at approximately 3%, a level broadly comparable to that of ServiceNow, suggesting limited near-term bearish conviction from short sellers.
