Jim Cramer on Palantir: "It's Among the Most Popular Stocks in the Universe"

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks on Jim Cramer’s radar. Cramer noted that the company’s CEO is one of the “smartest, most perceptive CEOs” he has ever met. He remarked:

“Palantir Technology reported a spectacular quarter after the close, much better than expected revenue, up 48% year-over-year, 2 cent earnings beat off a 14 cent basis, management raising their full year forecast dramatically. Company’s Rule of 40 score, which combines the revenue growth rate with the adjusted operating margin, came in at 94 for the quarter. I’ve never seen anything like it, so no wonder this already red-hot stock could surge in after-hours trading.

And look, I get Palantir. It’s among the most popular stocks in the universe. Alex Karp’s one of the smartest, most perceptive CEOs I’ve ever met. His team is amazing, and the contracts he accrued are incredible. But his stock, it’s overvalued versus any metric that I can find, the least of which may be earnings per share. It sells at something like an astounding 277 times earnings, and that was before this quarter and tonight’s after-hours gains. I accept that. Sometimes you have to pay too much for a real spec.”

Palantir (NASDAQ:PLTR) develops software platforms like Gotham, Foundry, Apollo, and its AI Platform to help organizations analyze complex data, support decision-making, and enable AI integration. The company’s tools are used for intelligence, defense, and enterprise data management.

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Disclosure: None. This article is originally published at Insider Monkey.