TLDR
- CEO Alex Karp sold 409,072 shares worth $60M+ through automatic tax transactions
- Citron Research shorted PLTR, claiming 75% overvaluation vs private AI startups
- Stock ended six-session losing streak but fell 1% Monday on market weakness
- Jim Cramer defended company, warning shorts against “overplaying their hand”
- PLTR remains up 107% year-to-date despite recent pressure
Palantir Technologies CEO Alex Karp executed a major stock sale last week, unloading over $60 million in company shares. The transaction comes as the data analytics firm faces fresh scrutiny from short sellers.
SEC filings show Karp sold 409,072 shares between $142.46 and $157.56 per share on Wednesday and Thursday. The sales were automatic transactions covering tax obligations from vesting restricted stock.
After the sale, Karp retains approximately 6.43 million Palantir shares valued at over $1 billion. The CEO’s stock disposal coincided with renewed pressure on the company’s high-flying shares.
Citron Takes Aim at Valuation
Short seller Andrew Left of Citron Research disclosed a position betting against Palantir stock. Citron’s report claimed the company is overvalued by roughly 75% compared to private AI startups like OpenAI and Databricks.
The short attack contributed to a six-session losing streak for PLTR shares. This marked the stock’s longest decline since April 2024, despite strong second-quarter earnings results.
Palantir had been nearly unstoppable for most of 2025, with shares more than doubling year-to-date. The recent weakness represents the first major challenge to the stock’s momentum.
Cramer Fights for Palantir
CNBC’s Jim Cramer pushed back against the bearish narrative surrounding Palantir. The Mad Money host defended the company on social media, blaming short sellers for the stock’s troubles.
“I heard so many people over obits for Palantir that I am now waiting for the empire to strike back,” Cramer posted Monday. He expressed confidence in CEO Karp, stating “Karp knows all.”
Cramer warned shorts not to “overplay their hand” as the company prepares for potential catalysts. Current short interest remains well below historical peaks of 7.75% reached in October 2023.
The stock snapped its losing streak Thursday with a modest gain. Friday brought a stronger rally after Fed Chair Jerome Powell renewed rate cut expectations.
However, Monday’s session saw renewed selling pressure as rate cut euphoria faded. PLTR closed down 1% at $157.17 as broader tech stocks declined.
Retail sentiment on Stocktwits remains bullish at 65 out of 100 with high message volume. The next earnings report is months away, making contract announcements or Fed policy moves potential near-term catalysts.
Despite recent volatility, Palantir maintains its position as one of 2025’s top-performing stocks with gains exceeding 107%. The company continues benefiting from strong demand for AI-powered data analytics solutions across government and commercial sectors.
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