Preface: I don't own the stock. This is me on the outside.
There is a case to be made to hang on to
some of it, especially if you have low basis. This seems like an overreaction to some news. Fundamentally the only thing that changed is the government is
supposed to cut the budget
somewhere.
It is a pretty big red flag that the CEO is selling
that much stock, but frankly, that's his right. And frankly, if that's all the dude has, who am I to crush the guy? I have a big chunk of my net worth in my company too, and I can tell you, the risk wears on a guy. I've started pulling more money out and getting some diversification just for some peace of mind. My situation is different than this dude's but I get it. I can think of a lot of reasons why the CEO selling his stock options is not a negative. Especially he still has a bunch of it.
If you liked the stock before, there isn't much that's changed. If you were looking for an offramp, by all means, fire away. If not, I'd sell enough to for sure break even and make enough profit to make yourself comfortable, and ride the rest. If you thought there was upside before, there still is.
/dude that doesn't have skin in the game.
Quote:
Palantir Falls On CEO Share Sale Plan, Possible DOD Budget Cut
Link
Palantir (PLTR) stock fell Wednesday on news that CEO Alex Karp plans to sell more than $1 billion worth of his shares and that the Pentagon is considering budget cuts over the next five years.
Palantir stock shed 10% to close at 112.06. The stock fell another 4% in extended trading.
Palantir disclosed that Karp's new trading plan provides for a sale of up to 48.9 million shares, which could be worth up to $1.23 billion, according to Barron's. Palantir reported the change in a Tuesday filing with the Securities and Exchange Commission.
In another development, Defense Secretary Pete Hegseth reportedly wants senior Pentagon leaders and other top military officials to come up with a plan to cut the defense budget over the next five years, according to the Washington Post.
Palantir's stock plunge ended a four-day winning streak. It also underscored the data analytics company's reliance on government and defense spending.
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