Jim Cramer Discusses “Difficulty” In Palantir (PLTR)’s Valuation & Narrative

Core Insights - Palantir Technologies Inc. reported third-quarter earnings with an EPS of $0.21 and revenue of $1.18 billion, surpassing analyst expectations of $0.17 and $1.09 billion respectively [2] - Despite the positive earnings report, Palantir's stock price declined, raising concerns about its valuation relative to its growth potential [2] Financial Performance - The company's EPS of $0.21 exceeded analyst estimates of $0.17 [2] - Revenue of $1.18 billion also beat expectations, which were set at $1.09 billion [2] Valuation Concerns - Jim Cramer highlighted the challenge of Palantir's valuation, questioning whether its market cap, which is around half a trillion, is justified given its growth metrics [2] - The price-to-sales ratio for 2027 is noted to be the highest in the S&P, indicating a potentially expensive valuation [2] Growth and Profitability - Cramer emphasized that Palantir exhibits "incredible" and "profitable" growth, which is a positive aspect of the company [2] - The company is recognized for its unique capabilities and strong management, particularly in military applications, with Shyam Sankar being noted as a leading thinker in the field [2]