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Palantir jumps after CEO Alex Karp forecasts $15 to $18B free cash flow
Palantir shares have risen about 40% in August despite CEO Alex Karp filing to sell more than 402,000 shares worth about $70.3 million.
Palantir Technologies shares climbed in August following remarks from CEO Alex Karp that pointed to substantially higher future free cash flow. According to MarketBeat Ratings, Palantir is up about 40% in August alone, after the company’s Aug. 3 earnings report.
In a July CNBC interview, Karp said Palantir has “more business than we can supply,” and projected free cash flow of $15 billion to $18 billion about two years out. The outlet noted that Palantir’s full year 2025 adjusted free cash flow was around $2.27 billion, making the target imply a gain of roughly 560% to 690% over two years.
MarketBeat Ratings said the rally continued even as Karp filed on Aug. 20 to sell more than 402,000 shares worth about $70.3 million. The outlet also cited ARK Invest trimming its Palantir position to fund a new SpaceX purchase.
The article also highlights how investors are split on the valuation implications. MarketBeat Ratings pointed to a discounted cash flow model using a conservative 20% annual growth rate over 10 years, which it says yields a fair value around $74 per share versus recent prices around $173, a gap that aligns with the bears’ view of overvaluation.