Jim Cramer’s concern that Palantir Technologies might not sustain its old trading momentum after its second-quarter earnings report did not materialize, as the stock has surged 26% since the release. Palantir posted $1.94 billion in revenue, beating analyst estimates of $1.8 billion, and guided full-year revenue between $8.15 billion and $8.158 billion. The quarter featured a 148% jump in commercial revenue and 90% growth in government revenue, addressing prior worries about commercial traction. Hedge fund ownership rose to 96 out of 1,022 funds in Q1 2026 from 89 out of 1,041 in Q4 2025, with Arrowstreet Capital holding a $1.5 billion stake after a 278% increase. The stock trades at a forward P/E of 84.03, far above peers like IBM at 18.98 and Microsoft at 25, fueling debate over whether its valuation is justified by its 93% revenue growth and AI market position.
