Palantir’s $137 Million Insider Sell-Off and Burry’s Bet Cloud a Record-Breaking Quarter

Palantir Technologies delivered its strongest quarterly performance to date, yet the stock is trading nearly 36% below its 52-week high—a disconnect that has drawn the attention of both skeptical analysts and one of Wall Street’s most famous bears.

A Quarter of Milestones

The Denver-based data analytics firm reported first-quarter 2026 revenue of $1.633 billion, an 85% surge from the prior year. US operations were the primary engine, with total domestic revenue jumping 104%. The US commercial segment alone climbed 133% to $595 million, while government business contributed $687 million.

GAAP net income hit $871 million, translating to a net margin of 53%. Adjusted earnings per share came in at $0.33, comfortably above the analyst consensus of $0.28. Management raised its full-year 2026 revenue guidance to a range of $7.65 billion to $7.66 billion, implying roughly 71% growth.

CEO Alex Karp has set an ambitious target: doubling US commercialization revenue again by 2027. The company’s balance sheet is pristine, with $8 billion in cash and zero debt. Its “Rule of 40” score—a metric combining growth and profitability—stands at 145, an extraordinary reading for a software firm.

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

Insider Exodus and Burry’s Bet

Despite these operational triumphs, the stock has been under persistent pressure. At roughly €115 ($116.34), the shares have shed nearly 19% since the start of 2026 and sit about 35% below the November 2025 peak. They also trade below all key moving averages.

A major factor weighing on sentiment is the scale of insider selling. Over the past 90 days, executives have unloaded shares worth approximately $137.7 million, according to one report, while another source puts the figure at $435 million over three months. COO Shyam Sankar alone sold $22.5 million worth of stock. Insider ownership now stands at roughly 9.5%.

Adding to the bearish narrative, Michael Burry—the investor who famously shorted the US housing market before the 2008 financial crisis—has opened a significant short position against Palantir. Burry’s put options on various instruments, including Palantir, represent nearly 7% of his portfolio. He has publicly argued that the stock’s fair value is in the low double digits and has taken aim at both the business model and Karp’s leadership.

Wall Street’s Deep Divide

The valuation debate has split the analyst community like few other stocks. Bank of America maintains a $255 price target, calling the quarterly results a “quality leap.” The bank points to 72 contracts worth over $5 million each and 47 deals exceeding $10 million—all signed in a single quarter.

On the opposite end, Jefferies rates the stock “Underweight” with a $70 target. The bear case rests on a forward price-to-earnings ratio of roughly 94 and a price-to-sales multiple of 44—levels that the bank argues require unrealistic growth assumptions, especially with competition intensifying from AI providers like Anthropic.

Palantir at a turning point? This analysis reveals what investors need to know now.

Citi and Wedbush have reiterated buy ratings with targets as high as $230, while short sellers note that the stock leaves no room for operational disappointment.

What Comes Next

Institutional investors have been buying the dip. ASR Vermogensbeheer increased its position by 8.1%, and Diversify Wealth Management added 134%. Yet the stock’s technical picture remains weak.

For the second quarter of 2026, Palantir has guided for revenue of approximately $1.8 billion. The market’s focus now shifts to August, when the company will report those results and must demonstrate it can deliver on its upgraded forecast. Whether that will be enough to reverse the stock’s slide depends on whether investors can eventually accept the premium valuation that comes with this level of growth.

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