karp. we're going to go there, by the way. alex. karp. he he dropped a bomb in the conference call.hrilled he did. the old days, i was upset. now i just. >> think, like. >> yeah. you don't like cursing. >> i don't mind, he's from philly. he's from philly. >> meanwhile, dozen eggs can cost you ten bucks. >> that's just outrageous. >> i'm going to do about that. >> you know, i'm going to go to crystal and popeyes. i don't need the. i don't need a darn waffle house. crystal's got that bucket of burgers. >> jim. >> we'll see you tonight. mad money. 6 p.m. eastern time as. >> we hang on. >> to s&p six k. >> we'll be right back. >> last chance to be on the disruptor 50 list. is your startup disrupting the status quo? scan this code or go to cnbc.com. slash disruptors to apply now. entries closing soon. >> every day. >> i'm reading extensively. i'm checking the markets throughout the trading. >> session. >> working the phones, talking to sources, and doing my own reporting to share. >> insights. information and. >> insights. information and. ok guys, instead of getting weathertech, i saved

karp got a gift for showmanship.arts his comments by saying, welcome to our palantir revolution, otherwise known as our earnings call. then karp backs it up with blocks up that kind of bluster with real stuff. real stuff. but how could explain why this stock trades at an incredible price? price to earnings multiples nearly 200 times this year's earnings estimates. he says the best way to value the company is to judge it the same way we judge normal enterprise software companies. and that's by this thing called the rule of 40. that's where you add the revenue growth rate to the profit margin. you get a number north of 40. you're dealing with a good business. palantir gets you to 81. that's astonishing. as karp says, quote, they may have to redo the rule because when you do twice the rule, maybe the rule isn't fair to other companies. end quote. yes, palantir does a ton of commercial business, but its most poignant work is with the pentagon. they're trying to reinvent the entire procurement process. listen to this quot

ceo alex karp talking about untamed ai demand pushing that stock higher.ck up almost 400 and all 480 almost 500% over the last year or so. rounding out the top five here at pdt up over 2%. app loving nxp semiconductor and arm holdings again rounding out that top five. when we're looking at the nasdaq 100, we're also seeing some moves in the etfs focused on china, canada and mexico. take a look here. we hit yesterday that we saw them under some pressure and making some moves, at least when it comes to canada and mexico this morning. completely up both of them up just about one almost a quarter percent. the chinese etf also up three quarters of 1%. basically again in the green across the board. we talked to our market guest later in the show about these moves and those etfs. we also want to talk about the dollar hitting a multi year high. right now you see the dollar actually pulling back a bit pulling back about a half a percent. since the president took office on inauguration day, pulling back just about three quarters of 1%. but again, very strong upside

ceo alex karp citing palantir's best in class d -- a.i. offerings said on the conference call, quote, welcome to our revolution. what, no to doubt, has investors thrilled is the sizzling enterprise business. in the past they were heavy on government contracts, but last month if on "the claman countdown," karp hinted the naysayers would be very wrong. listen. >> i mean, look, the u.s., our u.s. position grew 44% last quarter. 44. with a latent, basic nonexistent sales force, with me as ament front man offending half of america -- actually, the other half loves us. the people that believe in truth, justice, meritocracy and having a border. and, but sticking to our guns. and we've stuck to our guns, and the most important part of our business, that's commercial, you seemed to know it early, one of the few people who invited me on when i was a pariah. which was about a 18 years of our 20 the-year existence. yeah, look, you know, things are good at palantir. we said, we've said that, you know, the world is moving to software first, which no one

co alex karp describing demand as untamed organic growth. they also said full-year revenue will also be $3.75 billion, all things to that demand. the earnings prompted an upgrade from morgan stanley, raised their price target on the stock, reading to equal weight, saying fundamentals are getting better and there is a lack of a clear downside catalyst. the stock did have a big surge last year, up something more than 300% in 2024, but the gains are still continuing. also looking at shares of spotify. the streaming company posted user and revenue forecast that beat estimates. the stock is up about 10%, all coming from these upgraded forecasts. they say they see 675 million total active monthly users. the company also posted its first ever annual profit, so investors are really cheering strong earnings. finally, google has earnings after the bell. the stock is actually higher today despite what some investors are calling some retaliation from china onto google in response to tariffs. we saw today right after the chinese tariffs went into effect,

this is what alex karp was talking about, this notion that everyone on wall street kept ridiculing him and the company and, by the way, folks who bought and held the stock. >> well, and that's the thing, right? if wall street likes to believe they're the smartest people in the room, you and i have proven and we've seen so many people, decades you and i have known each other, that is not always true. particularly when it comes to a company like this. wall street can't understand because a company like palantir doesn't check all the boxes. the software analysts that are supposedly experts don't understand llm if or any other thing, so they default and tell everybody else they're stupid when, in fact, it's soup -- super smart. that's how breakthrough investing works. charles: two things. number one, their list of customers going through the roofing, particularly private customers. but i put out an alert the my subscribers to take profits. what are you doing right now with your position? >> well, i'm looking to add more. you know, i think this thing now that we've taken out every price tar

alex karp i think he'd find you if you didn't buy palantir.little talking to. let's go to mike in connecticut. mike. >> hey, jim. thanks for taking my call. and go eagles 59. wow. >> it's the marcus team here. absolutely. what's going on? >> it is the last friday you were speaking on the show about a stock and insider buying. well, that very week. >> i was researching. >> two companies that stock so i can swap out two. i wanted to take a profit on two stocks and put two more in the shoot. okay. one of the stocks was a retail stock and the insider buying was overwhelming. and the stock itself has had trouble throughout the years, but it doesn't seem to want to go away. i wanted to know if you thought that the insider buying maybe falsely inflated the stock, what stock agreement between the container store completed on january 31st. >> okay. and what is the. >> store stock right now? the stock is biogen. >> yeah, biogen. they're making they're buying everything but buy buy baby two i guess it's lemonis. look i actually like their stock i thought

on tariffs, karp telling cnbc this is a revolutionary moment. there are going to be. >> ups and downs, as. >> long as it's good for the upward. >> trajectory of america. >> we support it. we're looking at shares hitting a. >> new all time high of about 22% in after. >> hours, but only three buy ratings on wall street. >> melissa, while there are 14. holds and six sell. >> ratings, analysts at jefferies, they hold an underperform rating. and they're saying. >> we're not debating the. >> fundamentals, its valuation. >> that. >> they think is unsustainable. >> back to you, seema. >> thanks, seema mody. it's also worth noting the average price target on the street is. >> $51, about half of where. >> it is trading right now in the. >> after hour session. >> an extraordinary performance by this company. last year. and look at it this year. >> so far. >> without question. and if you how many years ago was the hope trade. >> from just three years. >> ago at least. so i'm just ahead of my time. >> but in our world. >> early is wrong. >> but what they're

alex karp called this a revolution.e made clear that the company is poised to benefit as global conflict rises. especially with china. but they also touted its commercial business. what do you make of that segment, and are you confident in its growth prospects? gil: the commercial segment is doing phenomenally well, because palantir is addressing the need and market. there is a deep need in the market for implementing ai solutions that can add insight and decision-making support, and palantir has a combination of an existing set of products they have developed over the years, as well as a strong professional services group that can help companies implement ai solutions quickly. they are uniquely positioned to do that and they are really writing the ai way right now. caroline: is that vindicate a price to earnings ratio, versus future earnings, that is trading at almost 200 times? this is a phenomenal valuation. gil: yes, it is. it is orders of magnitude higher than comparable companies, but the reality is there is no co

. >> alex karp, said. >> that the results demonstrate. >> the company's. deepening position. >> at the. center of ai of the ai revolution. i think they talked about organic growth. basically. >> that. >> couldn't be stopped. that stock is up by. >> about 20% right now. >> it's been one of the wildest, hugest outperformers of the last year. it's doubled. >> since last year. >> was it the largest gainer. >> last year? the best in the s&p 500 now went into the s&p during last year. but yes, of those stocks that finished in the s&p and just a real fevered following by retail investors. >> right. but now look at it one. year up 488% i think yesterday we were talking about. >> up. >> 360 something. >> so massive massive gains. also we've got dow component merck. just reporting earnings. >> listen up everybody. >> earnings came in at. $1.72 a share. that did beat the street's estimates of $1.62. revenue came in at. $15.6 billion. that beat estimates of. $15.5 billion. but revenue guidance for the full year. >> did come. >> in below. >> expectations, and. >> the r

alex karp came out and said, look, we are demonstrate thing our deepening position, we are at the centerwhat basically all of their early insights are showing they have moved from theory to fact. so they're monetizing a.i.. stuart: that'll get 'em going. that's a statement, all right. >> i know. stuart: super micro. i believe it's way up today. can you tell me why? >> this is a company we talked a lot about at the end of last year. the auditor pulled out, they had to get a new auditor, so basically they're going to be to giving us an update on february 11th, but we do know they said they are looking at net sales for next quarter of 5.a 5-6.1 billion dollars. that was in line with what analysts wanted, and remember that big independent committee came in and said that they found no evidence of misconduct or fraud. so maybe this is a company that's starting to turn around and put that bad news behind it. stuart: salesforce, job cuts. how many and why? >> 1,000 people all to pivot to a.i. they did say the thousand people, they do have the opportunity the apply to a.i. sales roles but, again,

. >> karp plan to. >> increase spending. >> on scooping up. >> some of the smaller competitors?ort. >> indicates a potential investment. >> in shield ai. >> that's a drone startup that counts the. >> us and ukrainian government. >> as customers. >> currently across. >> the street. >> three buys, 14 holds and six sells on the stock and the options market. >> right now. >> indicating about a 10%. move in either direction after earnings hit. mike. >> yeah it's a divisive stock. love by retail. the street's a little bit wary of that valuation. see how it how it breaks after the close. thank you seema. still ahead we'll break down the big impact tariff talk is having on the auto sector. closing bell. we'll be right back. >> sector sword is sponsored by sector spider etfs. sector spider etfs. visit us on the web at sector spiders.com. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized

. >> karp and an excellent interview last week with our own sara eisen i talked about the well kind of a genius he is. that's okay. you're allowed to do that now. it's brand new. notice this david little head and shoulders reverse head and shoulders developing okay. so he reports tonight. now we're hearing a lot about doge and what doge is doing. yes. and one of the things they're trying to do is figure out how to do procurement in a cheaper way. well, that is what alex does. he that's one of the many. look they also do consumer products. i do not want him even more mad at me. but they are unbelievable at procurement. now this is up 310%. this is the ultimate meme stock. they won't even let it come down at 4:00 david. they were propping it up. it wasn't samson, it was prometheus. and i do think that when you see the quarter, you're going to hear some great verbiage from alex, who i think will might still curse. that's why he doesn't like me in 2022. he cursed and i pointed that out and it stuck with me. and you also thinks i'm an idiot. that also hurts. but i will tell you that this is