Most billionaires haven’t sold Palantir stock because they didn’t own it in the first place. Billionaires probably aren’t fans of Palantir due to its nosebleed valuation. Some investors don’t worry about Palantir’s valuation because they believe the company is unique.

Only eight members of the S&P 500 have delivered year-to-date gains of over 100%, and Palantir Technologies is one of them. However, the stock has pulled back roughly 20% from its all-time high. While many investors are selling Palantir stock, most billionaires aren’t because they didn’t own it in the first place.

Billionaire investors like Bill Ackman and Warren Buffett didn’t sell Palantir stock recently because they didn’t own it. Druckenmiller exited his position in early 2025. A few billionaires do hold stakes in Palantir, including hedge funds run by Griffin and Englander.

The forward price-to-earnings ratio of Palantir is around 164, and it trades at 63 times projected 2026 sales. Some billionaire investors avoid it due to its high valuation, while others like Coleman and Tepper don’t see the growth justifying the price.

Billionaire investors may believe that Palantir’s sizzling growth will slow down, as Wall Street estimates a decline in year-over-year revenue growth. Some investors think Palantir is overvalued compared to other AI stocks like Nvidia.

The Motley Fool Stock Advisor team didn’t include Palantir Technologies in their list of 10 best stocks to buy now. The team has a total average return of 1,004% compared to 194% for the S&P 500. Before investing in Palantir, consider the team’s top picks for potential returns.

Keith Speights has positions in Berkshire Hathaway and The Motley Fool has positions in and recommends Berkshire Hathaway, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.

Read more at Yahoo Finance: Here’s the Simple Reason Why Most Billionaire Investors Aren’t Selling Palantir Stock