Palantir Technologies (NYSE: PLTR) has been making headlines lately, but not just for its technology. The stock has seen wild price swings, fueled by retail investor enthusiasm and broader meme stock momentum. CNBC’s Jim Cramer recently shared his thoughts on the company, calling it the “ultimate meme stock” while also recognizing its strong business fundamentals.
Cramer’s Take: A Meme Stock With Real Potential?
On a recent episode of Mad Money, Cramer pointed out how Palantir’s stock often behaves more like a meme stock than a traditional investment. He noted that retail investors seem to play a big role in keeping the stock price high, even when market conditions suggest otherwise.
However, Cramer wasn’t entirely dismissive of Palantir. He acknowledged the company’s expertise in artificial intelligence and data analytics, which have helped it secure lucrative government contracts. He even compared its work to Operation Warp Speed, the government’s rapid vaccine development initiative. But despite these strengths, he cautioned investors about the stock’s unpredictable nature, urging them to be mindful of its volatility.
Palantir’s Recent Market Rollercoaster
Palantir has seen massive stock price movements in recent weeks. At one point, its stock soared to an all-time high, prompting former JPMorgan strategist Marko Kolanovic to label it a “meme mega cap.” While the excitement around AI and government contracts has fueled much of the rally, some analysts have questioned whether the stock is truly worth its current valuation.
But the gains didn’t last. Reports of potential budget cuts in the U.S. Department of Defense, Palantir’s biggest customer, sent shares tumbling 10% in late February. Adding to the concerns, CEO Alex Karp announced he plans to sell nearly 10 million shares by September, raising questions about the company’s long-term outlook.
Meme Stock or Future Tech Giant?
Palantir’s journey mirrors that of other meme stocks, where hype-driven retail investors push prices higher, often beyond what traditional analysts think is reasonable. Social media platforms like Reddit and YouTube have played a big role in the company’s popularity, with individual investors holding nearly half of its available shares.
Despite the volatility, not everyone is bearish. Some analysts believe Palantir’s AI-driven business model and strong government partnerships give it long-term growth potential. William Blair analyst Louie DiPalma recently upgraded the stock to “market perform” from “underperform” after its latest dip, suggesting the worst of the sell-off might be over.
Should You Invest?
If you’re thinking about investing in Palantir, it’s important to weigh both sides. On one hand, the company has cutting-edge technology and solid government contracts that could drive growth. On the other, its stock price is heavily influenced by meme stock dynamics, making it a risky bet.
As always, investors should do their own research and consider whether they can handle the stock’s wild price swings. Whether Palantir is a long-term winner or just another meme stock bubble remains to be seen.
