Benzinga - It's clear Jim Cramer is not a fan of Palantir Technologies Inc (NYSE: PLTR). He doesn't even believe it's a "real company."
What To Know: Palantir announced an expansion of its partnership with Microsoft Corp (NASDAQ: MSFT) Wednesday morning. Following the news, CNBC's Andrew Ross Sorkin asked Cramer what he thought about the expanded partnership and the company as a whole.
"Palantir seems to be a company that's made up for memesters," Cramer said on CNBC's "Squawk Box."
He compared it to C3.Ai Inc (NYSE: AI), noting that both C3.Ai and Palantir were bid up by investors and aren't really "real companies."
He complained about CEO Alex Karp's use of foul language on conference calls and noted that if Karp "would stop dropping F-bombs," the company would have a lot more legitimacy.
Sorkin seemed to be taken aback by his comments. He said, "So you don't think that Palantir is a real company?"
"No," Cramer said. "I think that Palantir is a series of press releases."
Sorkin was surprised by his response. "Wow, fascinating," he said.
Cramer acknowledged that there is hope for Palantir. Maybe the company will pivot and start focusing on making money so that we can assign it a "real valuation," he said.
Regardless, Cramer said he prefers Palo Alto Networks Inc (NASDAQ: PANW), which is profitable.
It's worth noting Palantir reported its first quarter of positive GAAP net income last quarter, earning 1 cent per share on quarterly revenue of $509 million. The company also guided for continued profitability in 2023.
"I am so tired of the two markets, Andrew. The market that is made up of real companies and the market that's made up of companies that are run by people. When I say run, the stocks are run. Look what they did with this C3.Ai," Cramer said.
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PLTR, AI Price Action: At time of publication, Palantir shares were down 4.31% at $8 and C3.Ai shares were down 15.25% at $21.15, according to Benzinga Pro.
Photo: Owen Byrne from Flickr.
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