Alex Karp, the CEO of Palantir Technologies (NASDAQ:PLTR), is certainly riding high. The powerful executive used the company’s last earnings call to trumpet PLTR’s world-beating numbers and grand ambitions for the future.
Indeed, there is much for Karp to be proud of, as his company continues to break revenue records and add to its list of satisfied customers. Its $828 million in Q4 revenues was up 36% year-over-year. Moreover, PLTR recently announced a slew of new commercial clients last month surrounding its AIPCon 6 confab.
Still, after rocketing upwards throughout 2024 and the first few weeks of 2025, the stock has been sliding a bit of late. All told, the share price has fallen over 30% since reaching a peak towards the end of February.
One investor known by the pseudonym Stone Fox Capital is paying close attention to the actions of Karp, pointing out that the CEO is among those insiders who are selling large numbers of shares. Stone Fox suggests that other investors take notice of what these insiders are doing.
“In the case of Palantir, insiders sales have been extreme, suggesting valuation is the prime reason for the excessive selling,” notes the 5-star investor. “These executives saw this price as the gift of a lifetime.”
Stone Fox further explains that Palantir experienced over $1 billion worth of insider sales in September and November of 2024. The investor argues that this is a clear demonstration that these executives did not foresee much remaining upside for PLTR.
Stone Fox shares this view as well, explaining an “ultra-Bearish” take on the stock. “In essence, the stock has already priced in all of the forecasted growth for up to the next 10 years,” adds the investor.
That is not to say that Stone Fox is down on Palantir’s business – far from it. In fact, the investor calls PLTR a “market leading AI company.” The valuation, however, has become much too high for Stone Fox, who urges investors to cash out while there is still time.
Not surprisingly, Stone Fox Capital is rating PLTR a Strong Sell. (To watch Stone Fox Capital’s track record, click here)
Wall Street, on the other hand, isn’t quite ready to part with PLTR. Its 10 Hold ratings are complemented by 4 Buy and 4 Sell ratings, giving PLTR a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $92.13 has an upside in the high single digits. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.