Palantir Shares Face Mounting Pressure as Key Players Signal Caution

The remarkable ascent of Palantir during the 2025 tech rally is now confronting significant headwinds. Despite explosive growth in its core artificial intelligence operations, substantial insider selling and prominent bearish bets are creating palpable market anxiety. Investors are grappling with a pivotal question: is this AI specialist poised for a sharp correction, or merely a victim of its own spectacular performance?

Operationally, the company continues to demonstrate extraordinary momentum, presenting a compelling case for optimism. The most recent quarterly report revealed a staggering 121 percent surge in U.S. commercial revenue. This explosive growth underscores Palantir's accelerating success in monetizing its AI and data analytics platforms within the private sector, solidifying its transformation beyond a government-focused service provider.

Leadership Actions Raise Eyebrows

Adding considerable fuel to the current uncertainty, CEO Alex Karp himself has filed with U.S. regulators to sell 585,000 shares. At the time of the filing, this block was valued at nearly $96 million. While such a notice doesn't guarantee an immediate sale, the signal it sends is potent. When the chief executive orchestrates a transaction of this magnitude, many market participants interpret it as a sign that current valuation levels may be stretched. Following the aggressive price rally in 2025, this move is widely seen as an invitation to take profits.

Should investors sell immediately? Or is it worth buying Palantir?

The "Smart Money" Places Its Bets

The caution is not limited to company insiders. Reports indicate that Scion Asset Management, the firm led by "The Big Short" legend Michael Burry, has acquired put options on Palantir. This constitutes a clear hedge against potential share price declines, or even a direct wager on a significant downturn.

The root of this skepticism lies in Palantir's valuation. With a price-to-earnings (P/E) ratio exceeding 360, the stock appears to be pricing in absolute perfection, leaving no room for operational disappointments. The growing divergence between retail investor euphoria and professional money hedging has created a highly tense market environment.

A Battle for Support at a Critical Juncture

The stock is currently navigating a crucial technical phase. Having recently traded around €135.00, the shares have retreated approximately 25 percent from their 52-week peak. A tug-of-war is now underway: profit-taking, fueled by the insider selling news, contends against long-term investors who are focused on the triple-digit revenue growth. The coming sessions will determine whether the company's robust operational results are powerful enough to dispel the mounting doubts in the market.