Billionaire Ken Griffin Reduces Palantir Stock Position by 32% in Third Quarter 2025

TLDR

• Ken Griffin’s hedge fund reduced its Palantir stake by 32% in Q3, selling 224,152 shares after the stock’s 2,145% three-year gain
• Most billionaire investors including Warren Buffett, Bill Ackman, and Stanley Druckenmiller don’t own Palantir stock at all
• Palantir trades at a forward P/E ratio of 164 and 63 times projected 2026 sales, which many value investors consider too expensive
• The company reported Q3 revenue of $1.18 billion, up 63% year-over-year, beating estimates by $89.5 million
• Palantir’s stock has pulled back 20% from its November all-time high despite strong earnings performance

Billionaire hedge fund manager Ken Griffin reduced his position in Palantir Technologies during the third quarter of 2025. His fund sold 224,152 shares, cutting its stake by 32%. This move comes after Palantir’s stock has surged 2,145% over the past three years.

Palantir Technologies Inc., PLTR

The reduction follows Griffin’s recent warnings about current market conditions. He stated that fiscal and monetary policies currently in place look more appropriate for a recession than an expanding economy. This mismatch has created what he calls a “sugar high” in markets.

Griffin pointed to gold’s 60% gain this year as evidence that investors are seeking safety. He described the current environment as one marked by uncertainty, with AI stocks carrying particular risk. His positioning suggests he is being more selective about AI investments.

Palantir reported strong third-quarter results in November. The company posted revenue of $1.18 billion, up almost 63% from the previous year. This beat analyst estimates by $89.5 million.

The company’s non-GAAP earnings per share came to 21 cents. This was 4 cents above Wall Street expectations. Palantir ended the quarter with $6.4 billion in cash and cash equivalents.

Despite these results, Palantir’s stock has fallen 20% from its early November peak. The company now has a market capitalization of roughly $390 billion. At current prices, the stock trades at $168.45 per share.

Billionaire Investors Largely Absent

Most billionaire investors don’t own Palantir stock at all. Warren Buffett’s Berkshire Hathaway has never held shares in the company. Bill Ackman’s Pershing Square Capital Management also has no position.

Other prominent investors staying away include Chase Coleman’s Tiger Global Management and David Tepper’s Appaloosa hedge fund. Stanley Druckenmiller once owned Palantir shares but exited his position in early 2025.

The few billionaires who do own Palantir include Ken Griffin and Israel Englander. However, their hedge funds hold thousands of different stocks. Their portfolios are highly diversified across many sectors.

Valuation Concerns Drive Skepticism

Palantir’s valuation is the primary concern for many investors. The stock trades at a forward price-to-earnings ratio of 164. It also trades at 63 times projected 2026 sales.

This pricing is extreme compared to other AI companies. Nvidia reported similar revenue growth of 62% in its latest quarter. Yet Nvidia trades at a forward P/E of just 23.5 and about 20.5 times projected 2026 sales.

RBC analyst Rishi Jaluria rates Palantir as Underperform with a $50 price target. He cited concerns about growth concentration and limited visibility into sustainable demand. His target implies a 70% downside from current levels.

Wall Street analysts have mixed views on the stock. Of 16 recent reviews, three rate it as a Buy, 11 as a Hold, and two as a Sell. The average price target of $187.87 suggests an 11.5% gain over the next year.

Palantir’s AI Platform allows users to interact with data analytics tools using natural language. The system doesn’t require coding knowledge. This innovation has helped drive adoption across government and commercial sectors.

Wall Street expects Palantir’s revenue to grow 54% in 2025. Estimates for 2026 show growth slowing to 40.5%. CEO Alex Karp has defended the company’s valuation, stating it has been difficult for outsiders to properly assess the business.

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