While Palantir Technologies Inc. continues to announce explosive revenue growth and secure major government and commercial contracts, a significant divergence is emerging behind the scenes. Key company executives are liquidating massive stock positions, and a famed investor is placing a near-billion-dollar wager against the data analytics firm. This creates a critical puzzle for the market: why such pronounced skepticism during a period of apparent operational triumph?
A Clash of Convictions: Burry’s Bet Against the AI Darling
Adding a powerful voice to the cautious chorus is Michael Burry of Scion Asset Management, the investor legendary for his prescient bet against the U.S. housing bubble prior to the 2008 financial crisis. Public filings reveal that Burry has now acquired put options against Palantir, positioning his fund for a decline in the stock. The total notional value of this bearish position is approximately $912 million.
This move stands in stark opposition to the retail investor enthusiasm currently fueling the artificial intelligence narrative that has propelled Palantir’s valuation. Burry’s substantial short position signals a clear expectation of a major price correction, directly challenging the prevailing market optimism.
Executive Exodus: $200 Million in Stock Sales
Recent regulatory filings with the U.S. Securities and Exchange Commission (SEC) detail a coordinated wave of stock sales by Palantir’s top leadership. The transactions, filed between November 20 and November 24, 2025, represent a collective divestiture exceeding $200 million.
The specifics of the disposals are substantial:
* Chief Executive Officer Alex Karp filed to sell 585,000 shares, a holding valued at roughly $95.9 million.
* Chief Technology Officer Shyam Sankar reported the sale of 225,000 shares, worth approximately $36.9 million.
* Director Stephen Cohen disclosed plans to divest 405,000 shares, with a market value of around $66.4 million.
Should investors sell immediately? Or is it worth buying Palantir?
Notably, these sales were executed just a few percentage points below the stock’s all-time peak of 179.86 Euros, reached in early November. While such trades can sometimes be part of pre-arranged 10b5-1 trading plans, the sheer magnitude of the sell-off at such elevated price levels has rightfully captured investor attention.
Robust Fundamentals Face Valuation Vertigo
Operationally, Palantir’s recent quarterly report for Q3 2025 presents a picture of robust health. The company posted a 63% surge in revenue, reaching $1.18 billion. A particularly impressive highlight was the 121% explosion in its U.S. commercial business, which generated $397 million. Furthermore, in mid-November, the company announced a new strategic partnership with FTAI Aviation, underscoring its business development momentum.
However, this strong operational performance conflicts sharply with the company’s extreme market valuation. Despite the growth, Palantir shares trade at a price-to-earnings (P/E) ratio exceeding 360. This is considered stratospheric, even within the high-flying technology sector. The central question for investors is whether the current stock price has not only fully absorbed all future growth potential but has overshot it.
The Battle at $162
As of the latest data, Palantir’s stock was trading at $162.25, following a 4.8% advance on November 24. The equity is now caught in a tug-of-war between its undeniable hyper-growth and a valuation that appears stretched to many seasoned market participants. The simultaneous occurrence of massive insider selling and a high-profile short bet from Michael Burry suggests that those with deep knowledge of the company or market mechanics may view the current price as unsustainable.
Investors are thus left to weigh a critical decision: place their faith in the compelling growth metrics, or heed the warning signals from insiders and a celebrated contrarian.
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