Palantir Technologies Inc. (NYSE:PLTR) CEO Alex Karp welcomed praise from billionaire investor Stanley Druckenmiller during JPMorgan's Asset Managers CEO Forum which took place from Friday to Sunday, as the data analytics company's stock continues its remarkable ascent.
What Happened: Druckenmiller, chairman and CEO of Duquesne Family Office, endorsed Karp's new book "The Technological Republic," calling it "one of the most important books I've ever read." The endorsement comes as Palantir's stock has surged nearly 350% year-to-date, significantly outperforming broader market indices.
The interaction followed recent characterizations of Palantir as a "cult stock" by CNBC's Jim Cramer, who grouped it with Tesla Inc. (NASDAQ:TSLA) and Netflix Inc. (NASDAQ:NFLX) as companies whose loyal investor bases help them outperform traditional valuation metrics.
"A cult where I get no sexual benefits by the way. Just to be clear. It's a rare cult with no sex and very little drugs and we're not poisoning anyone," Karp said.
Druckenmiller's family office has recently increased its stake in Palantir, purchasing 769,965 shares in the first quarter of 2024 after previously exiting its position in 2023. The investment comes as Palantir's artificial intelligence platform, AIP, gains traction among customers.
Why It Matters: Karp also said that Peter Thiel, Palantir's co-founder, chose him as CEO because of his talent for recognizing and nurturing exceptional people. Thiel "is an artist in picking talent," Karp said
The company's market capitalization has now surpassed $169 billion, exceeding traditional defense contractor Lockheed Martin Corp. Wedbush Securities analyst Dan Ives remains bullish on Palantir, dubbing it the "Messi of AI" and predicting 2025 will be a breakout year for the company's AI platform.
The stock's surge comes despite recent insider sales, with CFO David Glazer and CTO Shyam Sankar selling $23 million and $367.9 million worth of shares respectively in December. Karp himself sold $132.8 million in shares last month, though these transactions represent small portions of their overall holdings.
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Palantir CEO Alex Karp. Photo by WEF on Flickr
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
