CEO Alex Karp Just Sold Over $60M in Palantir Stock. Here’s Why It’s a Distraction.

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VolkTue, Aug 26, 2025, 2:31 PM 3 min readPalantir Technologies (PLTR) has been in the headlines for its steep 17.9% pullback from its Aug. 12 record high of $190, even as the momentum stock continues to maintain a market-crushing 106% year-to-date gain. Today, reports are highlighting an Aug. 21 stock sale by CEO Alex Karp totaling over $60 million, along with $26 million in sales by CTO Shyam Sankar - so, should Palantir bulls panic?If they haven’t yet, probably not. First, there’s not much of a meaningful sentiment interpretation to take away from planned, automated, and/or tax-related stock sales by executives. Second, following the latest transaction, Karp still owns 6.4 million shares of PLTR stock worth about $1 billion.Is Nio Stock a Buy at 2025 Highs?A $10 Billion Reason to Buy This Quantum Computing Stock NowThis 3X Leveraged QQQ ETF Is Warning Traders of the Next Major MoveTired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!Here’s PLTR with a few different technical indicators to gauge its momentum and overbought status - Bollinger Bands, Relative Strength Index (RSI), and Average Directional Index (ADX) - which seem to indicate the sharp correction is leveling off.www.barchart.comHowever, valuation concerns loom large over the stock's prospects. PLTR trades at approximately 90 times forward sales and 242 times forward adjusted earnings, making it one of the most expensive components of the S&P 500 Index ($SPX). As a result, the stock was one of the hardest-hit when artificial intelligence (AI) plays were kneecapped last week by OpenAI CEO Sam Altman’s “bubble” warning.During the second quarter, Palantir’s revenue surpassed $1 billion for the first time, as the company demonstrated impressive growth across key segments. U.S. commercial revenue showed particularly strong momentum, surging 93% year-over-year to $306 million, while government revenue increased by 53% to reach $426 million.The company's growth also continues internationally, as evidenced by its newly expanded partnership with SOMPO Holdings through Palantir Technologies Japan KK. Encouraging adoption of Palantir’s Artificial Intelligence Platform (AIP) platform and consistent securing of major contracts, including a recent $10 billion U.S. Army deal, underscore their market leadership position in data analytics and artificial intelligence solutions.Several prominent analysts, including RBC's Rishi Jaluria, maintain bearish outlooks, suggesting additional downside risk of up to 71%. Even after PLTR’s earnings beat earlier this month, Jaluria raised the stock’s price target only to a Street-low of $45 and backed an “Underperform” rating, with the analyst writing that “we question the durability of AIP-led momentum.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,481.40 +15.46 (+0.24%)Dow 3045,565.23 +147.16 (+0.32%)Nasdaq21,590.14 +45.87 (+0.21%)Russell 20002,373.80 +15.20 (+0.64%)VIX14.85 +0.23 (+1.57%)Gold3,451.80 +18.80 (+0.55%)PortfolioSign in to access your portfolioSign inTop gainersMDB MongoDB, Inc. 295.70 +81.36 (+37.96%)SATS EchoStar Corporation 58.76 +7.89 (+15.51%)NCNO nCino, Inc. 32.69 +4.00 (+13.94%)LUMN Lumen Technologies, Inc. 5.27 +0.58 (+12.37%)PCT PureCycle Technologies, Inc. 14.86 +1.26 (+9.26%)Top losersTIGR UP Fintech Holding Limited 11.57 -1.25 (-9.75%)NEGG Newegg Commerce, Inc. 60.89 -6.14 (-9.16%)LI Li Auto Inc. 22.60 -2.05 (-8.32%)KNF Knife River Corporation 82.76 -7.39 (-8.20%)SMMT Summit Therapeutics Inc. 24.81 -2.17 (-8.06%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 +0.06 (+0.50%)OPEN Opendoor Technologies Inc. 4.0200 -0.6800 (-14.47%)NVDA NVIDIA Corporation 181.60 -0.17 (-0.09%)PSNYW Polestar Automotive Holding UK PLC 0.4700 +0.3100 (+193.75%)NIO NIO Inc. 6.34 -0.36 (-5.37%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNVDA NVIDIA Corporation 181.60 -0.17 (-0.09%)CRWD CrowdStrike Holdings, Inc. 422.61 +5.01 (+1.20%)SNOW Snowflake Inc. 200.39 +6.04 (+3.11%)HPQ HP Inc. 27.11 +0.10 (+0.37%)LUMN Lumen Technologies, Inc. 5.27 +0.58 (+12.37%)Top economic events