Palantir’s first hired employee just dumped $4.1M in shares — what does Alex Moore know that we don’t?

Palantir Technologies Inc share price was down in Friday pre-market as PLTR stock at Nasdaq fell by 1 per cent. Director Alex Moore, Palantir's first employee and board member, has sold Palantir shares worth $4.1 million. Palantir Technologies' bull run has been stalled even after a strong quarterly update from the company failed to extend its record-breaking rally.

Moore has let go Class A Common Stock amounts to 19,990 shares, as per a report on Investing.com.

With so much riding on prospects for AI, the sector's heavy weighting in major indexes leaves broader markets vulnerable to negative developments, investors said. The sector has declined over 3 per cent since last week, with weakness in names such as Palantir Technologies and Nvidia that have been signature stocks in the AI trade.


Palantir, which has more than doubled in value this year, forecast fourth-quarter revenue above market expectations on Monday, driven by a rapid AI adoption boosting demand for its data analytics services.

The company's stock has been riding on its strong relationship with the U.S. government after it won a slew of contracts, including using Palantir's data and AI technology in defence work. "Big Short" investor Michael Burry, known for his successful bets against the U.S. housing market in 2008, has now placed bearish bets on Nvidia and Palantir, according to a regulatory filing on Monday.

Late last month, Burry, in his first X post in more than two years, warned of a bubble, fanning investor concerns over inflated spending in the AI and tech industry.

"Time will tell if Burry has got his timing right or if the share decline in pre-market trading simply represents a pause for breath before Palantir starts racing higher again," said Dan Coatsworth, head of markets at AJ Bell.

Palantir's shares are up more than 170 per cent so far this year, after having surged around 1,000% in the past two years, sharply outpacing tech firms including Big Tech and AI giants Microsoft , Amazon and Alphabet.

Palantir has emerged as a retail favorite over the years, with daily retail cash turnover of about $302 million as of last close, the third highest among U.S.-listed shares that Vanda Track Research monitors.

If current losses hold, the company is set to erase nearly $48 billion from its market value. Palantir trades at nearly 250 times its 12-month forward earnings estimates, compared with AI chip frontrunner Nvidia's 33 and Microsoft's 29.92.

FAQs

Q1. How is Palantir stock trading on Friday?
A1. Palantir stock is trading in red in Friday pre-market.

Q2. How have Palantir shares performed this year?
A2. Palantir's shares are up more than 170 per cent so far this year, after having surged around 1,000% in the past two years, sharply outpacing tech firms including Big Tech and AI giants Microsoft , Amazon and Alphabet.