Palantir Technologies Inc (PLTR) shares surged 3.6% on Thursday, following reports that co-founder and chairman Peter Thiel had successfully sold the maximum number of shares permitted under his trading plan, initiated in May. This upward trajectory highlights the company’s recent success and a remarkable shift in sentiment from financial commentator Jim Cramer.
Cramer, initially dismissive of Palantir, labeling it as “not even a real company,” has completely changed his stance. This transformation is directly linked to Palantir’s strategic moves and impressive performance.
The company’s early 2023 announcement of an expanded partnership with Microsoft Corp (MSFT) sparked initial skepticism from Cramer. He criticized Palantir, calling it “a series of press releases” designed to appease meme stock enthusiasts. He even took aim at Palantir CEO Alex Karp’s use of expletives during conference calls.
However, Palantir’s strong quarterly results, featuring a pivot towards profitability, quickly altered Cramer’s perspective. He acknowledged the company’s transformation, stating, “They made money, $17 million, and they actually forecast GAAP positive, and what they did is pivot.” Cramer commended the company’s shift from “world domination” to a focus on financial success.
Palantir’s commitment to profitability, as outlined in a letter to shareholders by Karp, has solidified the company’s position, leading to a more than 20% surge in its stock price. This positive trajectory has drawn Cramer’s attention, leading him to express interest in further analyzing the company’s financial performance.
Furthermore, Cramer has been captivated by Palantir’s role in the ongoing war in Ukraine. He expressed his admiration for the company’s advanced AI technology, highlighting its ability to “control the battlefield” and empower Ukrainian forces. On a conference call, Palantir emphasized the rapid deployment and effectiveness of its AI products by Ukrainian troops.
This remarkable transformation, from skepticism to admiration, reflects Palantir’s significant strides in the AI market and its growing influence on a global stage. As the company continues its journey, investors and industry experts alike will be keenly watching to see how Palantir shapes the future of AI and its role in shaping global events.
