In the third quarter, Israel Englander’s Millennium Management sold 4.5 million shares of Palantir Technologies, trimming its exposure to the AI software leader. This move comes after Palantir’s stock soared more than 130% in 2025, making it one of the best-performing names in the S&P 500. Englander simultaneously deployed capital into Tesla, a company whose shares have risen over 27,000% since its IPO. Millennium’s repositioning signals caution on Palantir’s rich valuation despite its strong momentum and highlights a shift toward what Englander perceives as more attractive risk-reward profiles in the AI space.

Palantir reported another quarter of robust operating performance: customer count grew 45%, average spend per existing account rose 34%, and revenue jumped 63% to $1.1 billion—the ninth consecutive acceleration. Non-GAAP net income more than doubled, rising 110% to $0.21 per diluted share. Independent analysts from Forrester Research have named Palantir a leader in AI platforms, praising its ability to transition projects from prototype to production. Yet the shares trade at 110 times trailing sales, more than three times the multiple of the next-most expensive S&P 500 stock (AppLovin at 38 times sales). Historically, few software companies sustain valuations above 100 times sales, and none indefinitely, suggesting the shares could decline over 60% and remain the index’s priciest security.