Billionaire and tech innovator, Peter Thiel, just did what any good capitalist would do: he cashed in. And boy, did he cash in big. The Palantir co-founder sold nearly $600 million worth of stock this week, probably while lounging on a yacht named something absurd like Libertarian Wet Dream and sipping $1,000-a-bottle wine that tastes like liquid pretension.

Peter Thiel vibes, probably (Source: Instagram) 

In short, between Tuesday and Thursday of last week, Thiel offloaded around 16 million shares of Palantir at an average price of $36.90, according to filings with the SEC. That brings his total haul from Palantir stock sales in 2024 to more than $1 billion. And he’s not done yet—he’s got another 12 million shares locked and loaded, ready to sell whenever the market feels ripe.

(Source: Forbes)

The interesting thing here is the timing of the sell-off, especially since Palantir just got the golden ticket into the S&P 500 - with the stock riding the AI hype train all the way to the bank. For instance, the company’s shares are up a whopping 150% in the past year, hitting highs not seen since its January 2021 peak. It’s the kind of stock performance that makes even the most risk-averse investors start Googling “how to buy Palantir stock.” 

But Thiel, being the savvy investor he is, figured now’s as good a time as any to start peeling off some profits. After all, why wait for the bubble to burst when you can rake in a few hundred million right now?

Now Palantir, for the uninitiated, is a data-mining firm that’s become Wall Street’s latest AI darling. The company’s bread and butter is helping corporations and governments gather, analyze, and weaponize their data. And by governments, we mostly mean the U.S. military, which accounts for more than half of Palantir’s $2.5 billion in revenue. So it’s no secret that Palantir's been cozy with Uncle Sam for years, and that relationship has paid off big time.

(Source: CNBC) 

But it’s not just the government contracts that have investors frothing at the mouth. Palantir has somehow managed to capitalize on the AI craze, even though they’ve been peddling AI tech for years. It’s like they woke up one day and decided, “Hey, we’ve been doing this AI thing for decades—why not slap a shiny new label on it and ride the wave of hype?” And guess what? It friggint worked. Thanks to its AI chops, Palantir’s stock now trades at a mind-boggling 35 times revenue (and 200 times its earnings) making it one of the most expensive stocks on the S&P 500.

(Source: Seeking Alpha) 

But, but, but… if you though Thiel was the only one snappin’ necks and cashin’ checks here, you’re wrongo. CEO Alex Karp—known for his wild hair and even wilder ideas—has also been selling off shares like an overpaid Wall Street analyst tosses singles at a strip club. This month alone, Karp has sold $230 million worth of Palantir stock, with plenty more lined up to sell. 

(Source: Giphy) 

Meaning, between the two of them, Thiel and Karp have unloaded over a billion dollars in stock this year. However, while some may see this as a cause for concern, Thiel still holds around 110 million shares,while Karp’s got a fat stack of stock options waiting in the wings. Now only time will tell if they cash those out soon… but still, at least they still have some skin in the game. 

Now of course, the big question most are wondering is “Why are these guys selling when Palantir is soaring?”. Well, it’s simply all part of the master plan. Both Thiel and Karp have trading plans in place that allow them to offload shares without raising too many eyebrows about insider trading. These plans are pre-filed with the SEC and trigger automatic sales when certain conditions—like price targets—are met. Think of it as a way to cash out without looking like you’re bailing on your own company.

(Source: Yahoo Finance) 

But let’s be real: even with these trading plans, it’s all about timing. Thiel didn’t sell during the 2022 downturn, and he didn’t sell when the market rebounded in 2023. No, he waited until Palantir’s stock was back near its peak and the AI hype was at an all-time high. Well played Peter, well played. 

(Source: Giphy) 

Of course, as of right now Palantir’s stock is still climbing as the AI hype machine continues to keep rolling. But Thiel may be on to something… especially since history always points to what goes up must eventually come down.

So is this a self-fulfilling prophecy in the making? Or just another billionaire cashing out because why not? Only time will tell, but in the meantime stay safe and stay frosty, friends! Until next time… 

PS: We failed. Yep, you read that right. We didn’t hit our usual triple-digit target. Instead, our Wednesday pick only shot up 60%. Is that a letdown? Maybe for perfectionists, but to be honest, we’ll still take it. Want in on our next potential 100%+ winning trade alert? Click here to become a premium member.

Stocks.News doesn’t hold any positions in companies mentioned in the article.