- Palantir’s (PLTR) stock has plummeted 25% month-over-month and more than 33% from its 52-week high of $125.41 on February 18, 2025, driven by insider selling and external pressures like an 8% annual U.S. defense budget cut over five years.
- CEO Alex Karp sold $45 million in stock recently and $2 billion in 2024, reducing his stake by 21%, while adopting a 10b5-1 plan to sell up to 9.975 million shares by September 12, 2025, signaling unease to retail investors.
- Other executives, including CTO Shyam Sankar (21-plus million shares), ex-CAO Heather Planishek (2.3 million shares), and President Stephen Cohen (69.2 million shares), sold at $90.27 – $108.28 per share in late February 2025, amplifying negative sentiment.
Palantir (PLTR), a software company known for its secretive operations and significant defense contracts, is experiencing a sharp decline in its stock value, with shares dropping 25% month-over-month and 33% from a 52-week high of $125.41 on February 18, 2025. This downturn, accelerate by today’s nearly 7% dip/$84 per share, coincides with a wave of insider selling, most notably from co-founder and CEO Alex Karp, who has offloaded $45 million in stock over the past two weeks and approximately $2 billion throughout 2024, reducing his stake by 21%. Karp’s recent adoption of a 10b5-1 trading plan, allowing for the sale of up to 9.975 million shares of Class A common stock through September 12, 2025, has fueled speculation and unease among retail investors, who have historically driven the stock’s momentum.
The selling trend extends beyond Karp, with other key Palantir executives cashing out substantial holdings. Chief Technology Officer Shyam Sankar sold 21,419,899 shares on February 24, 2025, at prices ranging from $90.27 to $108.28 per share, while former Chief Accounting Officer Heather Planishek, who stepped down on February 24, unloaded 2,307,897 shares between February 21 and February 24 at prices from $96.43 to $108.28. President Stephen Andrew Cohen also parted with 69,269,088 shares on February 21, 2025, within the same price range. This coordinated divestment, as tracked by YF, has amplified negative sentiment, suggesting a lack of confidence among insiders despite the company’s high-profile status.
External pressures are compounding the stock’s woes. A Washington Post report detailing an impending 8% annual reduction in the U.S. defense budget over the next five years, directed by Defense Secretary Pete Hegseth, poses a direct threat to Palantir’s revenue stream, given its deep ties to Pentagon contracts. Additionally, the company’s reliance on its top three customers, which accounted for 17% of its 2024 revenue, underscores a vulnerability in its business model that investors are increasingly scrutinizing. The combination of these factors – massive insider sales, potential defense budget cuts, and customer concentration – has eroded the bullish narrative that once propelled Palantir’s valuation. As shares continue to slide, the aggressive stock disposals by Karp and his leadership team signal a strategic shift or a pragmatic response to an uncertain future, leaving the retail investor base that long championed the stock grappling with the fallout.
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