Palantir CEO Karp plans $1.23 billion stock sale by 2025

Palantir Technologies experienced a significant decline in its stock price, dropping over 10% following news of CEO Alex Karp's plan to sell nearly 10 million shares, valued at approximately $1.23 billion, by September 2025. This insider selling has raised investor concerns, especially amidst reports that the U.S. defense budget may face annual cuts of 8% over the next five years, which could adversely impact Palantir's revenue derived from government contracts. Despite these challenges, some analysts remain optimistic, with Loop Capital initiating coverage on Palantir with a Buy rating and a $141 price target, citing strong financial growth and effective market strategies. Karp's new trading plan follows a remarkable stock performance, where Palantir shares have appreciated significantly over recent months, driven by positive revenue projections and retail investor interest. However, the stock's high valuation relative to sales has led to caution among market observers regarding the sustainability of its growth. Amid the volatility, Palantir's stock remains closely watched as it navigates these market dynamics.