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Key Points
- Palantir’s CEO saw his net worth fall from $10 billion to $9.3 billion after a 10% decline in the company’s stock.
- Investor selling pressure pushed Palantir’s market cap below $250 billion, reversing gains that had earlier lifted Karp’s net worth past $10 billion.
- The company reported a 28.79% revenue jump to $2.87 billion in 2024, fueled by strong AI demand and government contracts.
Just ten days after his net worth hit the $10 billion mark—making him only the third billionaire of African descent in the U.S. to reach that level—Palantir CEO and co-founder Alex Karp has seen his fortune take a hit. A $700 million drop has pulled his wealth back below the milestone.
According to Forbes' real-time data, Karp, who co-founded the AI and big data analytics firm with Peter Thiel, Stephen Cohen, and Joe Lonsdale in 2003, has watched his net worth slip from $10 billion to $9.3 billion over the past 10 days.
Palantir decline trims Karp’s fortune
The decline is tied to the performance of his 2.63 percent stake in Palantir. Earlier this month, his fortune surged by $7 billion after a rally in the company’s shares pushed his wealth past $10 billion on Feb. 11.
But recent selling pressure has sent Palantir’s stock down more than 10 percent in the last five days, dragging its market value back under $250 billion.
Palantir has been one of Wall Street’s hottest growth stocks in recent years. Since January 2023, its share price has skyrocketed more than 1,700 percent, lifting Karp’s net worth from $1 billion to over $9 billion.
While the company’s rapid rise and strong AI positioning have drawn excitement, some investors are now cashing in on gains, especially with the stock trading at nearly 100 times its revenue.
Palantir’s revenue jumps on AI demand
Earlier this month, the Denver-based AI and big data analytics firm delivered earnings that exceeded Wall Street expectations.
For the 2024 fiscal year, revenue jumped 28.79 percent to $2.87 billion, up from $2.23 billion in 2023. Growing demand for AI-powered solutions has fueled its expansion, strengthening investor confidence.
Under Karp’s leadership, Palantir also reported a record $467.92 million profit—more than double the $217.38 million it posted the previous year.
Total assets surged 40.21 percent to $6.34 billion, while total equity grew from $3.56 billion to $5.1 billion, reinforcing the company’s financial position.
Government contracts remained a key driver, with revenue from that segment climbing 30 percent to $1.2 billion. Meanwhile, its commercial business saw even stronger gains, with revenue up 54 percent to $702 million.
Palantir secured 129 deals worth at least $1 million, including 58 contracts valued at $5 million or more and 32 exceeding $10 million. Palantir’s customer base also expanded by 43 percent, reflecting its growing influence in the AI market.
