There’s 1 Top AI Stock Insiders Keep Selling. Here’s Why Shares Could Plummet 50% in a Market Crash.
The Trump administration’s ambitious tariff actions (and threats) have set off a level of volatility in the U.S. stock market that investors haven’t seen since the pandemic. The market has not officially crashed, but it appears that the artificial intelligence (AI)-driven market rally that began in early 2023 has come to an end.
Given this volatility, it is worth considering which high-flying stocks may be most vulnerable if the market were to break down or crash in a worst-case scenario. My analysis suggests standout AI stock Palantir Technologies (NASDAQ: PLTR) is arguably the riskiest stock to own in this shaky market.
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The stock could realistically plummet 50% or more in a crash or prolonged downturn. Do Palantir’s insiders see the same warning signs? They have sold stock throughout the past year.
Here is what you need to know.
Palantir Technologies has had a remarkable run. The stock has risen over 404% over the past year alone and is up 1,600% since the start of 2023.
The company develops software applications on its proprietary platforms for government and enterprise customers. It launched its Artificial Intelligence Platform (AIP) midway through 2023, specifically for AI applications, and the company’s revenue growth has continually accelerated since then.
Palantir’s business has a very high ceiling due to the numerous things its AI technology can do. Its capabilities encompass all aspects of an organization’s data-driven operations, including applications across customer service, sourcing and supply chains, data modeling, scheduling, and more. The company ended 2024 with 711 total customers, a tiny fraction of the many companies and organizations that could use AI software at some point.
And yet, Palantir’s insiders (executive-level employees or large stakeholders) are selling stock. According to data collected by Barchart from regulatory filings, insiders have sold a total of 96.5 million shares across 95 transactions over the past 12 months. There have been zero insider purchases.
Insiders can sell for various reasons. Many key employees receive stock as part of their compensation package. For some, stock-based compensation is most of their income. It’s common for these employees to schedule automatic sales to raise cash.
