Jim Cramer Says Palantir (PLTR) Deserves a “Little Bit More Love” After a Massive Surge

After a dramatic weekly rally, a caller on the August 11 episode of CNBC's Mad Money pointed out the rapid trajectory of Palantir Technologies Inc. (NASDAQ:PLTR). The caller noted that the stock had jumped 44.1% in less than a week and appeared to face virtually no direct competition in its specialized enterprise software space. Jim Cramer responded:

I got to tell you, the litany is true. I have been saying that Palantir, remember, I was the guy who was on the hook for the $200 going to $250 but they're making me proud, and are they my buddy, pal, friends? Probably not… I will say they had a great quarter and they deserve a little bit more. They deserve some of the love.

Cramer's bullish sentiment on August 11 was not a sudden pivot, but rather the culmination of a thesis he defended through summer market volatility. During the June 18 episode of Mad Money, when a caller asked whether to add to an early position after the stock was hit with heavy selling, Cramer advised separating short-term share price movements from its operational strength. He said:

Oh boy, let me think about this, let me think about this. I think it's fine as long as you recognize, I just want to see what they've pushed it down to… yeah, I thought so, they really clubbed it today, as long as you recognize it as a long-term growth story. What's happened is the growth wasn't very exciting to people. The growth hasn't slowed down, just the stock.

A few weeks later, during the July 1 episode, as software stocks faced broader selling pressure, Cramer singled out Palantir Technologies Inc. (NASDAQ:PLTR) as his top high-growth pick:

The only one right now that I actually trust is Palantir. This is the fastest grower of the stocks I follow, and it's been crushed. It's down 80 points from its high. Today, it finally showed some signs of life.

Cramer's multi-month patience was validated by Palantir Technologies Inc.'s (NASDAQ:PLTR) second-quarter financial results posted on August 3. The company delivered a clean top and bottom-line beat, posting adjusted non-GAAP EPS of $0.41, beating consensus by $0.06. Total revenue reached $1.94 billion, up 94% year-over-year and outperforming expectations by $130 million.

Domestic operations drove the surge, with U.S. revenue leaping 115% year-over-year to $1.573 billion. Within that total, U.S. commercial revenue surged 149% to $764 million, while U.S. government revenue grew 90% to $809 million. Driven by accelerating enterprise adoption, management raised full-year 2026 revenue guidance to between $8.150 billion and $8.158 billion, well above the $7.72 billion consensus. Full-year adjusted free cash flow expectations were also increased to between $4.5 billion and $4.7 billion.