Palantir shares, which have more than doubled in 2025, soared on Tuesday morning after the defense technology company delivered a knockout punch to investors betting against the stock. “This company is dramatically undervalued here. It goes to $200. Whether it goes to $200 next week or tomorrow, I don’t know. But it’s going to $200,” CNBC’s Jim Cramer said on ” Squawk on the Street .” “Going to $200” represents nearly 25% upside to where shares closed on Monday at roughly $160.66 each, ahead of the company delivering ultra-high growth and huge margins. Palantir is the kind of stock that should not be held to traditional valuation metrics, Cramer said, which are off the charts at more than 90 times estimated sales of $4.2 billion for the next 12 months. Cramer, a longtime Palantir bull, said the metric to use for this stock is the “Rule of 40” — the percentage revenue growth rate plus adjusted operating margins; anything above 40 is positive. Palantir’s number is 94, as revenue grew 48% with a 46% margin. Palantir on Monday evening reported its first quarter with more than $1 billion in sales. Adjusted earnings per share (EPS) of 16 cents, nearly 78% higher than a year ago, also beat estimates. Management raised full-year guidance to levels higher than analysts were expecting. Cramer pointed out that the post-earnings conference call had tons of examples of companies that have saved lots of money using Palantir’s AI models and proprietary software.
