Palantir Technologies Inc's (NASDAQ:PLTR) AI halo flickered this week. Palantir stock slid to its lowest level since July, even after the company posted record growth that CEO Alex Karp called the fourth quarter earnings “indisputably the best results that I’m aware of in tech in the last decade.”
The market clearly disagreed — or at least decided to take profits first and ask questions later. What makes the selloff more intriguing is not just the 11% plunge, but who's selling into it.
Palantir Insider Selling
Just as the numbers were hitting headlines, Director Alexander Moore dumped roughly $3 million in Palantir stock under a pre-arranged plan. It wasn't a panic move — but it wasn't reassuring either.
Moore's sale adds to a broader pattern of insider trimming over the past year, including sales from Karp and other executives.
The message is subtle but loud: the people closest to the business are comfortable taking chips off the table at elevated prices. In markets, timing matters as much as fundamentals.
PLTR Retail FOMO
While insiders were cashing out, retail traders did the opposite.
Social chatter, options activity, and trading volumes point to classic buy-the-dip FOMO. To the crowd, Palantir's AI contracts, government wins, and sticky software look like a long runway — and this pullback looks like a gift.
That sets up the real tension: smart money booking gains versus retail betting that the story is just getting started.
Is PLTR A Buy The Dip Stock?
Bulls argue the selloff is overdone for a company still posting strong growth and expanding its AI footprint. Bears counter that Palantir stock's valuation already priced in perfection — and insider selling is a quiet warning sign.
For investors, the question is blunt: is this a temporary air pocket, or the first crack in a crowded trade?
Karp says the results are indisputable. Right now, the board's sell orders are even harder to argue with.
Photo by Mamun_Sheikh via Shutterstock
