Palantir Technologies Inc. (NASDAQ:PLTR) ranks 6th on our list of the stocks Jim Cramer recently discussed, where he emphasized that smart investing requires a degree of caution in frothy market conditions. However, Cramer noted that as the froth subsides, investors are turning to assets with more durability and longevity.
Cramer highlighted Palantir’s CEO Alex Karp’s tendency to downplay issues by blaming external factors, but also pointed out that the company needs a huge noisy client win to reset its narrative. The stock has recently been clobbered due to a parabolic move, and Cramer is waiting for a big contract or win to boost the earnings power.
As a software company specializing in complex data integration and decision-making, Palantir offers a range of products including Gotham, Foundry, Apollo, and its advanced Artificial Intelligence Platform (AIP). However, Cramer expressed concerns about the company’s earnings power, which he believes is what matters most for investors.
While acknowledging the potential of PLTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns within a shorter time frame. If you’re looking for a more promising AI stock trading at less than 5 times its earnings, check out our report on the cheapest AI stock.
Source: https://finance.yahoo.com/news/jim-cramer-says-palantir-technologies-153905185.html