As Alex Karp offloads 585,000 shares, Palantir’s pullback “will create new millionaires,” analyst claims
Palantir’s (PLTR) 25% slide from its all-time high has raised fresh questions about the AI data analytics company, a mood further dampened by CEO Alex Karp’s recent $95 million stock sale.
However, one key metric suggests the long-term growth narrative remains intact, and that patient investors may ultimately be rewarded for their conviction.
According to data from Value Sense, Palantir has steadily expanded both its free cash flow and free cash flow margins since 2021.
$PLTR turns into a real cash machine!
undefined Value Sense (@ValueSense_io) November 23, 2025
Palantir grows Free Cash Flow, expands margins while vlauation drops
This pullback will create new millionaires. No denial the company is legit! pic.twitter.com/kQ7rcnaPid
Free cash flow has grown from modest levels earlier in the decade to more than $1 billion annually by 2024 and 2025. That surge has pushed free cash flow margins from the mid-teens to above 40%, signaling improved operational efficiency, stronger profitability, and greater cash generation per dollar of revenue.
Yet despite these improving fundamentals, Palantir’s valuation multiple has declined from previously elevated levels. This combination of rising cash flow and falling valuation is a classic setup in which business fundamentals strengthen even as market sentiment cools, often creating opportunities for long-term investors.
“This pullback will create new millionaires,” Value Sense said, pointing to the kind of investors who prioritize free cash flow as a measure of underlying business strength.
On paper, Palantir remains as strong as ever. The company beat third-quarter expectations, driven by substantial growth in its government contracts — a steady source of strength that continues to buffer it from broader economic uncertainty.
Alex Karp sells PLTR stock
The recent Value Sense analysis comes as Palantir CEO Alex Karp pocketed roughly $96 million from the sale of 585,000 PLTR shares. According to regulatory filings, the shares were sold at an average price of $163.99 in a series of transactions executed on Nov. 20 by Morgan Stanley Smith Barney LLC Executive Financial Services.
Karp wasn’t the only insider selling. Executives Stephen Cohen, Shyam Sankar, Ryan Taylor, and David Glazer also unloaded stock, with insiders collectively selling about 1.26 million shares.
While insider selling of this type isn’t unusual, especially for executives with large, long-held equity positions, the timing coincided with a broader pullback in the technology sector, including a sharp unwinding of some AI-heavy stocks amid valuation concerns.
Much of that risk stems from the extreme concentration of AI-focused companies within the S&P 500. The International Monetary Fund raised the issue in its latest Financial Stability Report, warning that elevated concentration “makes the broader benchmark index vulnerable to downturns.”
For a stock like Palantir, which has surged more than 150% over the past year, the risk of a pullback becomes especially pronounced.