Jim Cramer Reiterates $250 Price Target for Palantir

CNBC host Jim Cramer has set a $250 price target for Palantir Technologies Inc. (NASDAQ:PLTR). He announced the target in a tweet following an interview with the company's CEO, Alex Karp.

Cramer was a vocal supporter of Palantir throughout 2025. He frequently praised the firm's potential to help businesses cut costs and assist in government cost-reduction efforts. The commentator previously predicted the stock would surpass $100 and then $150. He later reminded his audience when those targets were met.

For Palantir, the central investment debate revolves around whether its growth can justify its high valuation. A key concern in 2025 was whether its private sector expansion could match its established public sector role. On valuation, Palantir trades at a forward price-to-earnings (P/E) multiple of 78. This is high, especially considering the stock's flat performance over the past year.

Despite the stagnant share price, Palantir's financials showed significant growth in its second quarter. Revenue, operating income, and net income grew by 93%, 47%, and 225% year-over-year, respectively. The breakdown of revenue growth across different segments was particularly strong.

The company's Rule of 40 score, which combines growth and profitability, reached 155%. A score above 40% is generally considered strong. Palantir also reported a net dollar retention rate of 157%, indicating existing customers spent 57% more than in the prior year.

The AIP Bootcamp Factor

A significant part of Palantir's growth story is its Artificial Intelligence Platform (AIP) bootcamp. This program allows businesses to build AI tools using their own data within one to five days. While the bootcamp contributed to robust growth in the United States, the company's weaker international growth suggests there is more potential to tap.

Skeptics and Financial Metrics

Not all prominent investors are convinced. Michael Burry, known for his role in The Big Short, has raised concerns. He pointed out that Palantir's accounts receivable ballooned to $1.49 billion in the second quarter. Notably, 27% of those receivables were owed by a single customer. Burry also believes the firm's deferred revenue to revenue ratio is low compared to other software-as-a-service companies.

Valuation and Institutional Sentiment

Palantir's forward P/E ratio of 78 stands in stark contrast to peers like ServiceNow, which trades at a multiple of 27.25. Hedge fund interest appears to be cooling slightly. According to data from Insider Monkey, 86 funds held a stake in Palantir in the second quarter, down from 96 in the first quarter. Short interest as a percentage of the float is 3%, similar to ServiceNow's level. Notable hedge fund exits during the quarter included Two Sigma Advisors, Bridgewater Associates, and Point72 Asset Management.