'Beware Palantir Short Sellers'—Has Cramer's Curse Struck The Stock Again?

Palantir Faces Volatility Amid Cramer’s Comments and Geopolitical Developments

On Thursday morning, CNBC’s Jim Cramer took to social media with a warning for those betting against Palantir, stating, “Look out Palantir shorts, here we go again!” This immediately caught the attention of traders who often interpret Cramer’s endorsements as a sign of an impending downturn, a phenomenon sometimes dubbed the “Cramer Curse.”

• PLTR shares have declined.

Within the retail trading community, Cramer’s public support is frequently seen as a negative omen. Yet, this time, the situation is complicated by significant geopolitical events.

Impact of the Venezuela Operation

This week, Palantir’s stock experienced gains after a high-profile U.S.-led mission in Venezuela led to the apprehension of Nicolás Maduro.

Although Palantir has not officially acknowledged involvement in any classified activities, many investors speculated that the accuracy of the operation was linked to the company’s Gotham and AIP technologies.

Palantir’s stock rose nearly 4% on Monday, added another 3% on Tuesday, and reached a peak of $187.28 on Wednesday before ending the day at $181.68.

Defense Sector Rallies on Trump’s Military Spending Proposal

Other defense industry leaders, including Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC), saw their shares surge on Thursday. This followed former President Donald Trump’s announcement the previous night, advocating for a 50% increase in military spending by 2027.

Trump also suggested limiting dividends and share buybacks for traditional defense contractors to accelerate production, while emphasizing the importance of AI-driven advancements—a move that could benefit Palantir directly.

Despite these developments, Palantir’s stock did not join the broader defense rally. Instead, PLTR shares dropped at Thursday’s open, shortly after Cramer’s message to short sellers.

Is It a Curse or a New Opportunity?

Did Cramer’s remarks spell trouble for Palantir? The stock was under pressure on Thursday, trading near $175—a decline of over 3.5%.

Given Palantir’s price-to-earnings ratio exceeding 400, this pullback may simply represent investors taking profits at a historically high valuation.

While Cramer’s endorsements have sometimes coincided with short-term peaks, the recent successful operation in Venezuela and the prospect of increased defense spending make Palantir a challenging stock to bet against.

Short sellers should remain vigilant—not only for Cramer’s commentary but also for signals coming from Washington.

PLTR Stock Update: At the time of writing on Thursday, Palantir shares had fallen 3.69% to $174.98.

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Stock Snapshot

• PLTR (Palantir Technologies Inc): $176.26 -2.98%
• LMT (Lockheed Martin Corp): $517.30 +4.11%
• NOC (Northrop Grumman Corp): $591.51 +2.51%