TLDR
- Peter Thiel has submitted a filing to sell 2 million Class A shares of Palantir (PLTR), which are valued at approximately $280 million at $140 per share, through Merrill Lynch.
- PLTR has witnessed a four-session consecutive ascent, its longest winning streak since early December, propelled by U.S. and Israel’s strikes on Iran, which bolstered defense-related stocks.
- Palantir has substantial U.S. defense contracts, including a $10 billion deal with the U.S. Army and a $448 million contract with the Navy.
- Rosenblatt commenced coverage with a Buy rating and a $150 price target, and UBS upgraded to Buy with a $180 target, citing strong demand for AI.
- Michael Burry, who holds a short position in PLTR, contended that the Anthropic AI incident demonstrates “the stickiness resides in Claude’s technology, not Palantir’s.”
Peter Thiel has filed to sell up to 2 million Class A shares of Palantir Technologies (PLTR), which are valued at roughly $280 million at $140 per share. According to an SEC filing dated March 2, the sale will be carried out through Merrill Lynch, Pierce, Fenner & Smith.
Thiel last sold PLTR stock in October 2024. He has served as the company’s chairman since its establishment in 2003 and remains among its largest individual shareholders.
The timing is noteworthy. PLTR has climbed for four consecutive sessions, its longest winning streak in nearly three months.
The rally was triggered by U.S. and Israel launching strikes on Iran, which caused defense-linked stocks to rise due to concerns that the conflict might prolong for weeks. Palantir was among the top performers in the S&P 500 on Monday.
The company has deep defense connections. It has a $10 billion contract with the U.S. Army and a $448 million contract with the Navy, making it a direct beneficiary when defense spending sentiment changes.
Wall Street Turns Bullish
Last week saw two new upgrades. Rosenblatt started coverage with a Buy rating and a $150 price target, describing it as a “market-disrupting, uniquely positioned AI software leader.”
Rosenblatt also noted the recent pullback, where PLTR dropped about 33% from its October peak, as an appealing entry point.
UBS went a step further, upgrading from Neutral to Buy with a $180 target. The bank labeled it a “premier growth story” situated at the intersection of AI and data spending, citing strong demand in recent channel checks.
PLTR currently trades at approximately 110 times forward earnings and over 46 times forward revenue. The stock has soared more than 1,400% since its New York Stock Exchange debut in September 2020.
Burry Keeps His Short
Not all are optimistic. Michael Burry, who disclosed a short position in Palantir last year, added new criticisms this week.
He commented on the U.S. government’s decision to grant a six-month phase-out period for AI, even after identifying it as a supply-chain risk. Burry argued that this episode “demonstrates that the stickiness is in Claude’s technology, not Palantir’s,” implying that the underlying AI model is more critical to defense operations than the software layer.
Burry has also expressed concerns about Palantir’s accounting, noting that accounts receivable have grown faster than revenue in recent quarters. He also highlighted increasing costs related to CEO Alex Karp’s personal jet usage.
Bob Lang, founder of the trading platform Explosive Options, provided a more practical perspective: “They do not manufacture weapons, missiles, or planes,” and noted that “Palantir’s large contracts are significant but likely already reflected in the stock price.”
Palantir has 2,291,470,751 shares outstanding. UBS has a $180 price target for the stock, which is the highest among recent analyst updates.
