Palantir CEO Faces Insider Selling Amid Stock Slide

MENLO PARK, Calif. — Alex Karp, CEO of Palantir Technologies, recently utilized the company’s earnings call to highlight impressive revenue growth and ambitions. Palantir reported fourth-quarter revenues of $828 million, marking a 36% increase year-over-year, and announced multiple new commercial clients at its AIPCon 6 conference last month.

However, despite these positive results, Palantir’s stock price has dropped over 30% since its peak in late February, raising concerns among investors. One prominent investor, known as Stone Fox Capital, is closely monitoring Karp’s actions. Stone Fox has observed significant insider selling, suggesting that top executives believe the stock’s valuation is inflated.

“In the case of Palantir, insider sales have been extreme, suggesting valuation is the prime reason for the excessive selling,” Stone Fox explained. The investor noted that more than $1 billion worth of insider sales took place in September and November 2024. This selling indicates that executives do not foresee substantial remaining upside for the stock.

Stone Fox shared an “ultra-Bearish” perspective on Palantir, claiming, “The stock has already priced in all of the forecasted growth for up to the next 10 years.” Despite his skepticism regarding the stock’s valuation, Stone Fox recognizes Palantir as a “market leading company” and advises investors to consider selling their shares while opportunities still exist.

Stone Fox Capital has rated PLTR as a Strong Sell based on these observations. In contrast, Wall Street maintains a more tempered stance. The stock holds 10 Hold ratings, alongside 4 Buy and 4 Sell ratings, resulting in a consensus Hold rating.

The average price target on the stock over the next 12 months is $92.13, indicating potential upside of high single digits.

For more insights on AI stocks that are trading at attractive valuations, TipRanks offers a variety of tools for investors. This article reflects the perspective of the featured investor and is intended for informational purposes; conducting personal analysis is crucial before making investment decisions.