The optics are hard to square. Palantir’s technology chief is selling shares through a prearranged plan, one of Wall Street’s most famous growth investors is trimming her stake, and the CEO has disclosed a personal selling arrangement of his own. Meanwhile, the company just raised its annual forecast by the widest margin in its history and posted quarterly numbers that most software firms would struggle to dream up.
That tension — record operational performance colliding with a flurry of insider selling — is the story of Palantir’s week.
The sellers, and why their moves may be routine
Shyam Sankar, Palantir’s chief technology officer and executive vice president, offloaded 35,000 shares on August 6, a transaction valued at roughly $5.45 million. The sale was executed through a Rule 10b5-1 plan established in advance, meaning the timing was automated rather than a discretionary call made in response to recent events.
Cathie Wood’s ARK Investment Management has been active on the sell side as well. Since the company reported second-quarter results on August 3, ARK has disposed of approximately $21 million worth of Palantir stock across multiple tranches between August 4 and August 8. After the shares jumped another 10 percent on the Friday of that week, ARK added to its selling. Even so, Palantir remains one of the largest positions across Wood’s fund family — a sign that the activity looks more like routine rebalancing after a sharp run than a vote of no confidence.
CEO Alex Karp has also been in the spotlight for a disclosed stock sale plan, which contributed to a souring of sentiment after the earnings pop.
The numbers behind the noise
The second quarter was, by nearly every measure, exceptional. Revenue climbed 93 percent year over year in the primary article’s account, while the secondary source puts the increase at 94 percent to $1.94 billion — with earnings per share beating consensus by 6 cents at 41 cents. The US commercial business, a key focus for investors, expanded 149 percent to $764 million, and the US government segment grew 90 percent.
Net income reached $1.07 billion, up from roughly $329 million in the year-ago quarter. The company’s Rule of 40 score — a favored metric in software that combines growth and profitability — hit 155 percent, a figure that puts Palantir in rarefied air.
Should investors sell immediately? Or is it worth buying Palantir?
Management responded by lifting full-year 2026 revenue guidance to a range of $8.15 billion to $8.158 billion, up from the prior $7.65 billion to $7.66 billion band. The increase of roughly 11 percentage points marks the largest guidance raise in company history. Karp described the quarter as “out of this world” and told CNBC he expects the momentum to persist for at least another 18 months.
The valuation elephant
For all the operational brilliance, the stock’s price tag remains the sticking point. With a market capitalization of roughly €371.51 billion, Palantir trades at multiples that look demanding even for a company growing at this clip. The trailing twelve-month price-to-earnings ratio sits above 140, compared with around 28 for Microsoft and roughly 17 for Alphabet.
The technical picture reinforces the caution. The shares closed Friday at €150.46, down 3.1 percent on the day — the steepest single-session decline since May 2025. That pullback came after a 30-day run that still shows a gain of 29 percent, with the stock trading 28 percent above its 50-day moving average and 16 percent above its 200-day average. Annualized 30-day volatility of 99 percent underscores just how febrile the trading environment has become. Year to date, the stock is actually down 4.2 percent — a reminder that the recent euphoria masks a bumpier longer-term ride.
Bulls and bears in the same arena
The divergence in positioning is striking. Michael Burry, the investor famed for betting against subprime mortgages before the 2008 crisis, has doubled his put options on Palantir, with strike prices in the low triple digits and expirations stretching into 2026 or 2027. At the same time, 96 hedge funds held the stock in the first quarter, up from the prior quarter.
Analysts, for their part, remain broadly supportive. Deutsche Bank upgraded the stock from Hold to Buy on August 4, calling the quarter “extraordinary” while keeping a $200 price target. Phillip Securities followed on August 10, lifting its target from $202 to $215. Jim Cramer, never one to mince words, said on Mad Money that Palantir deserves “a little more love” after the results.
What actually matters
The insider sales, on closer inspection, reveal little about the company’s fundamental trajectory. A prearranged 10b5-1 plan is procedural by design, and ARK’s trimming of an outsized position is standard portfolio management. The more consequential question is whether Palantir can sustain near-100 percent growth while carrying a valuation that leaves virtually no room for disappointment. With an operating margin of 43 percent and revenue up nearly 80 percent over the trailing twelve months, the operational case is strong. Whether the market will keep paying a price that bakes in perfection — that is the bet both sides are making.
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