Was Jim Cramer Right About Palantir Technologies Inc. (PLTR)?

We recently published a list of Was Jim Cramer Right About These 9 Stocks?. In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other stocks that Jim Cramer discusses.

When asked about Palantir Technologies Inc. (NASDAQ:PLTR), Cramer surprised viewers by walking back his previous support. He said he could no longer recommend the stock due to a lack of clarity around the business model.

“I think here’s the problem… I know that the back end is good… It’s very tough to understand what they really do for the government. So therefore I am no longer going to say that that’s a stock to own. I can’t figure out what they do.”

Cramer’s call to drop Palantir was clearly wrong as the stock surged +524.62% since.

Palantir Technologies Inc. (NASDAQ:PLTR) develops big data analytics platforms used by government agencies and enterprises for intelligence, defense, and operational decision-making.

However, Cramer recently recommended the stock as one of the riskiest ones he would recommend a baby with $1000 to buy. Here are his comments from June 3:

“When you give money to a baby, what you’re really doing is investing in long-dated assets that can compound over time. Truly amounts to something by the time the kid turns, I don’t know, even 18. So what should the baby do with her money? Well, I just have a plan. We need this baby to take risk, but we also need her to be diversified. I know that the prevailing money management orthodoxy is to go all in on index funds because the experts don’t believe you’re smart enough to handle your own money. But the truth is that in this case, you can… split the baby’s account.

You want to put $500 in the Nasdaq 100 to get diversified exposure, and this one does skew toward tech, I don’t mind that, and then you want to pick five stocks for the other 500. I prefer the first one to be risky. You could take a Palantir, ridiculously expensive stock, consulting company uses AI to conquer organizations, show them how to become more efficient.”

Overall, PLTR ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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