[Music] [Music] Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cra.Other people, my friends. I'm just trying to make you a little money. My job is not just to entertain, but to teach, put in context.So, call me at 1800 743 CNBC. Tweet me at Jim Kramer. Not that long ago, pretty much everybody assumed that the next non- tech stock to cross the trillion dollar threshold would be the stock of Eli Lilly.Why not. They developed a weight loss and diabetes wonder drug with incredible prospects. Oh, but this mar ...

Core Viewpoint - Laughing Water Capital is a concentrated, long-biased investment partnership targeting businesses facing temporary issues or market misunderstandings due to GAAP accounting or structural challenges [1] Investment Strategy - The company focuses on owning stakes in businesses that are currently undervalued or misinterpreted by the market [1] - It emphasizes the importance of management teams having significant equity ownership to ensure proper incentives for operational improvement [1] Operational Philosophy - The company views its portfolio companies as partners and expects management teams to navigate through challenges effectively [1] - Patience is highlighted as a crucial element in realizing benefits from operational improvements and multiple expansions [1]

Core Insights - Palantir Technologies has seen a remarkable stock price increase of approximately 630% since the beginning of 2024, making it one of the top performers in the market [1] - The company has demonstrated significant growth in both government and commercial revenue, with government revenue growing 45% year over year to $487 million and commercial revenue increasing 33% to $397 million in Q1 [5][6] - The valuation of Palantir's stock is considered extremely high, with revenue growth of only 40% compared to the stock price increase, indicating a potential risk for investors [8][10] Company Performance - Palantir's platform excels in providing AI solutions, transforming business operations for clients like Wendy's and Heineken, significantly reducing the time required for complex tasks [3][4] - The company initially focused on government clients but has successfully expanded into the commercial sector, with U.S. commercial sales growing at an impressive rate of 71% year over year [5][6] Valuation Metrics - Despite the stock's substantial rise, Palantir's valuation metrics suggest that the stock is overpriced, with forward P/E and P/S ratios indicating a high premium [10] - If Palantir achieves projected revenue of $20 billion and profits of $6 billion in five years, it would still be valued at 14 times sales and 48 times earnings, which are typical for growth stocks [10][11] - The assumption that Palantir can sustain high growth rates and profitability margins is critical, but the current stock price reflects an expectation of significant future growth that may not materialize [12]

Core Insights - Laughing Water Capital is a concentrated, long-biased investment partnership targeting accredited investors [1] - The firm focuses on acquiring stakes in businesses facing temporary challenges or those misunderstood by the market due to GAAP accounting issues or structural impediments [1] - The investment strategy emphasizes partnership with portfolio companies, seeking management teams with significant equity ownership to drive operational improvements and multiple expansions [1] - Patience is highlighted as a crucial element in the investment approach [1]