Palantir has been an absolute monster in the AI boom—up 1,620% since ChatGPT went mainstream in late 2022. The company's financial results are genuinely impressive: 70% revenue growth, Rule of 40 score hitting 127%, and margins expanding to 57%. Morgan Stanley calls it the emerging standard for enterprise AI. On paper, this should be a no-brainer.

But here's where it gets interesting. CEO Karp has been publicly attacking short-sellers, calling out market manipulation when Michael Burry disclosed his bearish position in Q3 2025. Meanwhile, Karp himself has quietly sold $2.2 billion in company stock over the last three years. Even after his latest November 2025 sale, he still holds $832 million in shares, but the message is clear: the guy running the company doesn't believe the valuation anymore.

Palantir's core strength is real—their ontology-based architecture for data analytics and the AIP platform letting developers integrate large language models into workflows is genuinely differentiated. Forrester ranked them as a leader in AI decisioning platforms. The company's customer count jumped 34% to 954, with average spend per customer up 139%. Management is guiding for 60% revenue growth in 2026, which would accelerate from 56% in 2025.

But valuation-wise, this is wild. At 74 times sales, Palantir is the most expensive stock in the S&P 500 by a massive margin. AppLovin sits at number two with 30 times sales. The stock could literally lose more than half its value and still hold that distinction.

I think Karp's selling pattern is the real tell here. You don't offload $2.2 billion in company stock if you genuinely believe the risk-reward setup is favorable. Insiders sell for various reasons, sure, but that volume isn't random. The financial results are solid, but the valuation has gotten completely detached from reality. If you've got a meaningful position in Palantir, Karp's actions might be worth taking seriously as a signal to lock in some gains.