Palantir Slides, Pfizer-Novo Nordisk Bidding War Heats Up, Fund Giant to Vote Against Musk's $1T Pay Package 11/4/25

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David Faber (1:00)

Market insight and analysis. You're listening to the opening bell of CNBC Squawk on the Street.

Carl Quintanilla (1:06)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at Post 9 of the New York Stock Exchange. Stocks are on pace for about 1% declines as earnings are arguably a little more mixed today. High valuations in focus. Palantir is set to open down almost 8% on results. 10 year 409 Our roadmap begins with this AI trade and some fears about valuations. Palantir sinking despite the earnings beat and the raised outlook.

David Faber (1:30)

Plus one of Tesla's top 10 shareholders plans to vote against Elon Musk's trillion-dollar pay package of the company's annual meeting on Thursday. And the earnings break continues this morning. They got Uber and Pfizer among some of the bigger names reporting. Both those stocks will start the morning under a bit of pressure.

Carl Quintanilla (1:51)

Let's begin with Palantir down in the pre-market despite the company posting a quarterly beat, raising their full year revenue guidance. We heard from Alex Karp just a moment ago, talking about results and society and the shorts. Take a listen.

Alex Karp (2:06)

When I hear short sellers attacking what I believe is clearly the most important software company in America, therefore in the world in terms of our impact, simply to make money and calling, trying to call the AI revolution into question where we have these anomalous numbers, 114, rule of 40, etc. It just is super triggering because these people, they could pick on any company in the world. They have to pick on the one that actually helps people, that actually has made money for the average person, that is actually supporting our war fighters. Why do they have to go after us? And I'll tell you what, though, it's crazy motivating, because I'll tell you why the short sellers are constantly getting screwed by Palantir. Because every time they short us, we just are like tripling down on getting the better numbers, in part, honestly, to make them poorer.

Carl Quintanilla (2:52)

So, with that, Jim, back to 190

Jim Cramer (2:54)

Well, look, it's funny, because you read through the conference call and he says, well, if people come on CNBC and they say, they make fun of us, they tell you, I'm on CNBC quite a bit, and I have been liking the stock very much since 50 I thought it was an excellent quarter. I continue to think that they are doing things that other people are not doing and that they're very special. I will say sometimes I like the rule of 40 analysis.

The growth here is incredible and it's profitable growth. I really like that. I think the difficulty is that you say, okay, listen, is it worth a half a trillion? That's the big issue. It's like you take a look at the market cap versus what you look at in terms of, then you look at price of sales for 2027 Highest in the S&P. Highest in the S&P. You say it's really expensive, but then you say this is an incredibly profitable, really well-run company that is doing great things. By the way, I have to tell you, I think that their military stuff, Shyam Sankar, who is probably, I think, the most, maybe the foremost thinker these days in the military, and he works at Palantir, he's excellent. So I just say, okay, let them sell it. I'm not as concerned about the short sellers. Let people sell it, but it's going to settle in, and they are doing amazing things, and they, the companies that I dealt with when I was so concerned about them, that hire them, I haven't found a company that hires them that doesn't think that they haven't added tremendous value to them. So David, I'm stuck with, yes, a market cap. I'm stuck with how to value on 2027 sales, but I am not stuck with this. They are a great company that does great things, both commercial and military, and I salute them, but saluting them doesn't make you money today.