Jim Cramer recently expressed his preference for Salesforce over Palantir as his favored software stock due to Salesforce’s strong fundamentals and growth potential. While Palantir has gained immense attention, boasting significant increases in its U.S. commercial business (up 50% in 2024) and government services (up 27%), Cramer remains skeptical about investing in it for his portfolio. He commented that while Palantir is a highly valued enterprise software company and has experienced a 340% stock surge in 2024, its complex business model complicates predictions regarding future growth and earnings. Morgan Stanley described Palantir as one of the early winners in the AI era but still issued an underweight rating, projecting the stock to have a 25% upside with a price target of $60. Despite Palantir’s promising metrics and strong stock performance, Cramer stated that it doesn’t fit his investment strategy due to valuation uncertainties. In contrast, Cramer champions Salesforce, particularly praising its AI-powered Agentforce chatbots gaining traction across various industries, making it a reliable component of his investment portfolio.
