Jim Cramer Commented That the "Fundamentals Seem Very Strong at Palantir"

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer recently expressed his thoughts on. A caller asked if they should sell the stock now after recovering their cost basis or hold long-term in hopes of a potential $1 trillion valuation. Cramer commented:

“I don’t know if it’ll hit a trillion-dollar market cap. Here’s what I know: you took out your cost basis, you cannot lose money now. I think that is an incredible position, and what I like to do when I can’t lose money is I like to let… [it] run unless the fundamentals change. And right now, the fundamentals seem very strong at Palantir.”

Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms that support data integration, analysis, and operational decision-making for governments and enterprises. During the September 18 episode, Cramer explained why the company’s stock is speculative. He said:

“What [are] examples of what speculation means? Let me give you some categories. Alright, first, there are the richly valued stocks with real earnings like Palantir. Here’s a company that clients swear by because it aggregates data, uses artificial intelligence to find patterns that can turbocharge sales and earnings. People love this company. It’s also got a cybersecurity aspect. Palantir’s profitable, but the stock now sells for 277 times this year’s projected earnings. That’s why it’s speculative.”

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