Jim Cramer opened his Mad Dash Thursday morning with a striking call. Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) is now the cheapest he has ever seen it. That is a striking sentence about a company still trading at a trailing P/E of 146x.
Cramer’s exact framing, after watching CEO Alex Karp’s recent interview, was “I will say this is the cheapest I’ve seen in the stock. I do like the stock. I think the company does a great job when you bring them in.” He added that “you got to bring in Palantir if you want to try to figure out outside the box what to do with your organization.”
Cramer’s Palantir call
Palantir just posted Q1 2026 revenue of $1.632 billion, up 84.7% year over year, with U.S. commercial revenue up 133% to $595 million. Management raised full-year guidance to $7.65 billion to $7.66 billion, roughly 71% growth. Karp told investors in the Q1 press release that the company’s Rule of 40 score hit 145%, a level matched only by NVIDIA (NASDAQ:NVDA), Micron (NASDAQ:MU), and SK hynix.
Meanwhile the stock has gone the other way. PLTR is down 22% year to date and off 14% in the last month alone, touching a 52-week low of $106.37 before bouncing. Accelerating earnings, decelerating stock. That is what Cramer means by cheap.
The enterprise software catch
Cramer flagged ServiceNow (NYSE:NOW) and Salesforce (NYSE:CRM) as the other names worth watching in the enterprise-AI complex. ServiceNow was up big the prior day amid a broader enterprise-software uptrend, with the IG index working on a possible fifth straight up day.
On ServiceNow, Cramer said “I believe that their AI is substantial, particularly ServiceNow. And I don’t think I think clients do like them.” The fundamentals back him up. NOW posted Q4 2025 subscription revenue of $3.466 billion, up 21% year over year, with Now Assist net new ACV more than doubling. FY26 guidance sits at $15.53 billion to $15.57 billion in subscription revenue. Still, the stock is down 47.72% over the last year on a split-adjusted basis, so the market is digesting something.
Salesforce looks cheap the traditional way. Trading around $166 with a P/E of 19x and a forward P/E of 12x, CRM shows Q1 FY27 EPS of $3.88 beat estimates by 24%, and Agentforce ARR crossed $1.2 billion, up 205% year over year.
Marc Benioff, on the May 27, 2026 report, called it “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow.” The stock is still down 34% year to date.
Why contracts are getting shorter
Cramer’s hesitation on ServiceNow was “My issue is, is that I keep hearing that they’re not getting the long contracts. They’re getting a shorter contract.”
The instinctive read is that AI is not delivering. Cramer explicitly rejected that. “It’s not because AI is doing something right now. It’s that, you know what? We can’t take a four year. It’s just too dicey for us.”
CIOs are still buying, still deploying, still writing checks. They just do not know what the enterprise stack looks like in 2029, so they refuse to lock in four-year terms. Shorter duration compresses cRPO growth and rattles anyone modeling software companies on backlog. Buyers respect the pace of change enough to keep optionality, even as demand stays firm.
That is the frame for all three names. Palantir is expensive on earnings and cheap on trajectory. ServiceNow is dominant on product and messy on contract length. Salesforce is the traditional value name growing Agentforce ARR faster than either. If Cramer is right that Karp’s team gets called in when boards do not know what to do next, and if ServiceNow really is the rails every AI initiative runs on, the shorter-contract complaint may end up looking like a footnote. Watch the July guidance cycle for confirmation.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks