TLDR
- CEO Alex Karp sold 409,072 shares worth over $60 million last week through automatic tax-withholding transactions
- Citron Research disclosed a short position, claiming PLTR is overvalued by 75% compared to AI startups
- Stock snapped a six-session losing streak but declined 1% Monday as broader market pulled back
- Jim Cramer defended the company, warning shorts not to “overplay their hand” and predicting a comeback
- Despite recent weakness, PLTR remains up over 107% year-to-date
Palantir Technologies CEO Alex Karp unloaded more than $60 million worth of company stock last week. The massive sale comes as the data analytics firm faces fresh scrutiny over its sky-high valuation.
According to SEC filings, Karp sold 409,072 shares at prices between $142.46 and $157.56 per share on Wednesday and Thursday. The transactions were automatic sales to cover tax obligations following restricted stock vesting.
Even after the sale, Karp still owns about 6.43 million Palantir shares. Those holdings were worth more than $1 billion as of Monday afternoon.
The CEO’s stock sale coincided with renewed pressure on the company’s shares. Palantir had been on a tear for most of 2025, with the stock more than doubling despite concerns about volatility.
Short Sellers Circle
That momentum hit a wall recently when Citron Research took aim at the company. Short seller Andrew Left disclosed a position betting against Palantir stock.
Citron’s report claimed Palantir is overvalued by about 75%. The firm compared the public company to private AI startups like OpenAI and Databricks.
The short attack helped trigger a six-session losing streak for Palantir shares. The decline marked the stock’s longest slide since April 2024.
The selling pressure came despite strong second-quarter results that had initially boosted the stock earlier this month. Investors seemed to focus more on valuation concerns than operational performance.
Cramer Fights Back
Not everyone is convinced the bears have it right. CNBC’s Jim Cramer jumped to Palantir’s defense on social media Monday.
“I heard so many people over obits for Palantir that I am now waiting for the empire to strike back,” Cramer posted. He blamed short sellers for the recent stock decline.
Cramer warned shorts not to “overplay their hand” and expressed confidence in CEO Karp. “Karp knows all,” he said in his post.
The TV personality’s comments came as short interest in Palantir remains relatively low historically. Current short interest sits well below the 7.75% peak reached in October 2023.
Palantir managed to snap its losing streak Thursday with a small gain. The stock then rallied Friday after Fed Chair Jerome Powell sparked rate cut hopes.
But Monday brought fresh selling pressure as rate cut euphoria faded. Palantir closed down about 1% at $157.17 as the broader market pulled back.
The iShares Expanded Tech-Software Sector ETF, which holds Palantir as a major position, fell 0.7% Monday. Other AI stocks have also faced pressure recently as investor enthusiasm cools.
Retail investors remain bullish on the stock according to Stocktwits data. Sentiment sits at 65 out of 100 with high message volume continuing.
The next major catalyst for Palantir likely won’t come until quarterly earnings in several months. Potential contract announcements or Fed rate cuts could provide nearer-term catalysts.
Despite the recent weakness, Palantir stock remains up over 107% for 2025. The company continues to benefit from growing demand for AI-powered data analytics services.
