In the third quarter, Israel Englander’s Millennium Management sold 4.5 million shares of Palantir Technologies, trimming its position in the AI analytics software provider. This move came despite Palantir posting its ninth consecutive quarter of accelerating revenue growth—up 63% year-over-year to $1.1 billion—and non-GAAP net income more than doubling to $0.21 per diluted share. Customer count climbed 45% while average spend per customer rose 34%. Analysts acknowledge Palantir’s unique ability to operationalize AI, but Englander’s reduction highlights growing concerns over the stock’s valuation and whether the company can sustain its current growth trajectory.

On January 8, 2026, Cathie Wood’s ARK Invest sold $10.4 million of Palantir shares and redirected that capital into Broadcom, while also allocating $2.5 million to flying-taxi startup Joby Aviation. The decision follows Palantir’s meteoric stock performance—up 135% in 2025—and reflects ARK’s broader strategy of rotating out of richly valued names and into firms perceived to offer more attractive risk-reward profiles. The move underscores how even committed AI investors are reevaluating large positions once short-term gains have materialized.

Palantir now trades at over 110 times trailing sales—nearly three times higher than the next most expensive stock in the S&P 500—and more than 175 times forward earnings. Historically, few software companies sustain multiples above 100 for long, and within the index the second-highest sales multiple sits at 38. At current valuations, Palantir could decline by roughly two-thirds and still remain the most richly priced stock in the benchmark. While bullish analysts point to continued AI adoption and potential defense spending tailwinds, the extreme premium suggests significant downside if growth decelerates as management forecasts a slowdown from 54% to 42% revenue growth in the coming year.