Palantir (PLTR) Stock: Cramer Curse Strikes Again as Shares Drop 3.5% after Bullish Post

TLDR

• Palantir stock dropped over 3.5% on Thursday after Jim Cramer posted “Look out Palantir shorts,” triggering fears of the infamous Cramer Curse among traders.
• Shares had climbed earlier in the week following the U.S.-led operation that captured Venezuelan leader Nicolás Maduro, with investors linking the mission’s precision to Palantir’s technology.
• President Trump’s call to boost military spending by 50% in 2027 sent other defense stocks surging, but Palantir fell after Cramer’s post.
• Truist initiated coverage on Palantir with a Buy rating and $223 price target, calling it a “best-in-class asset” with revenue growth accelerating to 63% year-over-year.
• The company maintains operating margins above 50% and posted a Rule of 114 profile last quarter, with U.S. government revenue up 50% and commercial revenue surging 73%.

The timing couldn’t have been worse. Palantir had just enjoyed a strong rally earlier in the week after a successful U.S. military operation in Venezuela resulted in the capture of Nicolás Maduro.

Shares climbed nearly 4% on Monday and another 3% on Tuesday. The stock hit $187.28 on Wednesday before closing at $181.68.

Palantir Technologies Inc., PLTR

Investors speculated that Palantir’s Gotham and AIP platforms played a role in the operation’s precision. The company doesn’t confirm involvement in classified missions, but the connection seemed obvious to traders.

Then Cramer spoke. Shares fell more than 3.5% on Thursday, trading around $175.

Defense Spending Announcement Backfires

Other defense contractors celebrated when President Trump called for a 50% increase in military spending by 2027. Lockheed Martin and Northrop Grumman shares surged on the news.

Palantir should have benefited too. The administration’s focus on AI-driven efficiency aligns perfectly with the company’s capabilities.

Instead, shares dropped after Cramer’s post. The so-called Cramer Curse struck again, according to retail traders who track the Mad Money host’s predictions.

Trump also threatened to restrict dividends and buybacks for traditional defense contractors to force faster production. That policy could actually favor Palantir over legacy defense companies.

Analyst Sees Strong Fundamentals

The selloff came just days after Truist initiated coverage with a Buy rating and $223 price target. On January 6, the firm called Palantir a “best-in-class asset” with accelerating fundamentals.

The company’s AIP platform has driven revenue growth to 63% year-over-year. That’s up from just 13% growth in Q2 2023.

U.S. government contracts increased 50% year-over-year over the past two quarters. Commercial revenue jumped 73% in the same period.

Operating margins now exceed 50%. The company reached a Rule of 114 profile last quarter and guided for Rule of 113 in Q4 2025.

Truist compared Palantir against 110 other software companies. The firm found Palantir expected to generate the highest Rule of 40 over the next three years.

The analyst believes the company can maintain a sustainable Rule of 80+ profile. That would balance 50%+ operating margins with continued strong revenue growth.

Palantir trades at a trailing P/E ratio above 400x. The Thursday dip may simply represent profit-taking at historical valuation levels.

Most of Palantir’s current revenue comes from its U.S. business. The company is positioned to benefit from international expansion pathways as well.

Truist acknowledged the stock’s valuation premium but still rates it a Buy. The firm sees a major opportunity for Palantir to drive GenAI adoption across government and enterprise sectors.

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