Palantir CEO Alex Karp sells 585,000 shares for $96 million

Tech unicorn Palantir

Palantir CEO Alex Karp has sold about $96 million in PLTR stock, according to new filings — a transaction that has reignited debate about insider stock sales, boardroom beliefs and the future of one of the most controversial tech companies on the market.

Karp, who has always maintained a disciplined approach to divesting shares, executed the transaction through a pre-planned transaction (10b5-1), but the size and timing surprised Wall Street. With Palantir’s valuation soaring on the back of its AI platform (AIP), government contracts, and strong commercial growth, investors are watching insider shareholder activity more closely than ever.

The size of the insider share sale

While insider stock sales are not unusual among large-cap tech companies, a CEO selling nearly $100 million is a notable event. Karp has sold stock before, but this represents one of the following:

• His biggest deal in a single period.

• PLTR's management's most important internal share sale in 2025.

• An important psychological point for investors during high growth periods.

Palantir's market capitalization has recently passed important milestones, and such large-scale share sales often coincide with pivotal moments when executives diversify their portfolios or take risks.

Palantir's AI-fueled protest explodes

The sale comes amid rapid adoption of AIP (Artificial Intelligence Platform), which is driving US government deals in the defense and intelligence sectors.

Expanding commercial contracts with S&P 500 companies. Strong forward guidance and positive free cash flow.

PLTR has been one of the best-performing S&P 500 stocks over the past 18 months, thanks to the shift from big data to applied AI.

When stock prices rise sharply, insider selling often reflects profit-taking, not a lack of confidence.

Diversification or Warning Signal?

Karp's sale—totaling $125 million by 2025—fits the 10b5-1 standard for executives (e.g., Zuckerberg's Meta sale), represents <1% of his stake, and funds philanthropy or diversification given Palantir's 107x revenue multiple.

With the Fed holding rates at 4.25%, PLTR's 40% upside justifies the premium, but Burry's put (understood to have a notional value of $9.2 million) highlights the bubble risk—AI shares are down 10% from their September peak.

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