Billionaire Ken Griffin Cuts Palantir Stake by 32% in Q3
TLDR
- Citadel’s Ken Griffin sold 224,152 Palantir shares in Q3 2025, trimming his position by 32% as the stock trades near record highs
- Warren Buffett, Bill Ackman, Stanley Druckenmiller and most other billionaires have never owned Palantir stock
- The AI company trades at 164 times forward earnings and 63 times 2026 sales projections, far above competitors like Nvidia
- Palantir posted Q3 revenue of $1.18 billion, up 63% annually, with earnings per share beating forecasts by 4 cents
- Analysts remain divided with 3 Buy ratings, 11 Holds and 2 Sells, while the stock sits 20% below its November peak
Hedge fund billionaire Ken Griffin reduced his Palantir Technologies holdings during the third quarter of 2025. Citadel sold 224,152 shares, decreasing its stake by 32%. The sale comes after Palantir stock climbed 2,145% over three years.
Palantir Technologies Inc., PLTR
Griffin recently expressed concerns about market conditions. He warned that current fiscal and monetary policies resemble measures typically deployed during recessions, not economic expansions. These policies have created artificial market support, according to the billionaire.
The investor highlighted gold’s 60% year-to-date gain as a sign of investor caution. He described the market environment as uncertain, with AI stocks carrying concentrated risk. His recent trades suggest a more selective approach to AI sector exposure.
Palantir delivered strong third-quarter results in November 2025. Revenue reached $1.18 billion, marking a 63% increase from the prior year. The figure exceeded analyst predictions by $89.5 million.
Non-GAAP earnings per share totaled 21 cents, beating estimates by 4 cents. The data analytics company held $6.4 billion in cash and equivalents at quarter end. Despite these results, shares have dropped 20% from their November high.
Most Billionaires Never Invested in Palantir
A review of recent 13F filings reveals most billionaire investors have no Palantir exposure. Warren Buffett’s Berkshire Hathaway has never purchased shares. Bill Ackman’s Pershing Square Capital Management holds no position in the company.
Chase Coleman’s Tiger Global Management and David Tepper’s Appaloosa also avoid the stock. Stanley Druckenmiller previously owned Palantir but exited the position in early 2025. Only a handful of billionaires maintain stakes, including Griffin and Israel Englander.
These investors’ hedge funds hold thousands of stocks across various sectors. Given Palantir’s $390 billion market cap, some exposure would be expected. The widespread absence suggests deliberate avoidance rather than oversight.
Extreme Valuation Drives Investor Caution
Palantir’s pricing metrics explain the hesitation. The stock trades at a forward price-to-earnings ratio of 164. It also carries a valuation of 63 times projected 2026 sales. These multiples far exceed typical technology sector ranges.
Nvidia provides a stark comparison. The GPU manufacturer reported 62% quarterly revenue growth, nearly matching Palantir’s 63% increase. Yet Nvidia trades at a forward P/E of 23.5 and roughly 20.5 times 2026 sales projections.
Value investors like Buffett and Ackman typically avoid stocks with premium valuations. Growth-focused billionaires also appear skeptical that Palantir’s expansion justifies current prices. Wall Street forecasts show revenue growth slowing from 54% in 2025 to 40.5% in 2026.
RBC analyst Rishi Jaluria maintains an Underperform rating with a $50 price target. His analysis cites growth concentration in U.S. markets and limited visibility into long-term demand. The target implies 70% downside from current levels.
Analyst consensus shows division on Palantir’s prospects. Out of 16 recent ratings, three recommend buying while two suggest selling. Eleven analysts rate it as a hold. The average price target of $187.87 indicates potential 11.5% upside.
Palantir’s AI Platform enables natural language interaction with data analytics tools. Users don’t need coding skills to access the system. This accessibility has driven adoption across government and commercial customers. CEO Alex Karp has argued traditional valuation methods don’t apply to Palantir’s unique business model.
The post Billionaire Ken Griffin Cuts Palantir Stake by 32% in Q3 appeared first on Blockonomi.
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