Palantir’s CEO Unloads Shares: A Telling Inflection Point

Summary:

  • Inflection investing is challenging and often involves making unpopular decisions that others may not understand.
  • Recommending a stock can be unpopular because it involves seeing potential others can’t.
  • Alex Karp selling 10% of his stake raises concerns for me; when the captain jumps ship, it often signals rough waters ahead.
  • At 54x forward free cash flow, Palantir is no longer undervalued, and my strategy demands I rotate capital into more favorable opportunities.

Man is alone and isolated in his own bubble outside

mikkelwilliam

Investment Thesis

Palantir (NYSE:PLTR) is today a crowd favorite. It has amassed an amazing army of devoted investors.

And yet, its captain has just unloaded about 10% of his holding. Does this inspire belief in the company? Or does it further nuance to


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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