Tech billionaire Alex Karp loses $1.8 billion, still U.S. third-richest Black person

Key Points

• Palantir’s stock decline slashed Karp’s net worth from $10 billion to $8.2 billion, reflecting a drop in his 2.63% stake.
• Despite a recent pullback, Palantir’s stock on Nasdaq has surged over 1,500% since 2023, boosting Karp’s wealth.
• Strong AI-driven demand helped Palantir’s revenue hit $2.87 billion, with profit soaring from $217.38 million to $467.92 million.

Less than three weeks after joining the elite group of U.S. Black billionaires worth over $10 billion, Alex Karp, CEO of Palantir Technologies, has seen his net worth take a hit.

His fortune has dropped by $1.8 billion in the past two weeks, bringing his total wealth down to $8.2 billion. Despite the decline, he remains the third-richest Black person in the U.S.

Alex Karp loses $1.8 billion in market dip

According to Forbes, which tracks the wealth of the world’s richest individuals, Karp’s net worth fell from $10 billion on Feb. 11 to $8.2 billion. The drop is tied to a slide in the market value of his 2.63 percent stake in Palantir, which has fallen from $7 billion to $5.3 billion.

Palantir’s stock, which had soared to an all-time high of $124.62 on Feb. 18, has since pulled back to $89.31. That decline has dragged the company’s market capitalization from over $280 billion to $203.4 billion. Still, the stock remains up more than 18 percent.

Palantir remains one of Wall Street’s hottest stocks

Palantir has been one of Wall Street’s hottest stocks, surging more than 1,500 percent since January 2023. That rally propelled Karp’s net worth from $1 billion to over $8 billion.

While the company’s strong AI positioning has fueled excitement, some investors are now locking in gains, especially with shares trading at nearly 100 times revenue.

Earlier this month, Palantir posted earnings that beat Wall Street expectations. The company’s 2024 revenue jumped nearly 29 percent to $2.87 billion, up from $2.23 billion in 2023, as demand for AI-powered solutions continued to rise.

Palantir’s profit doubles to $467.92 million

Under Karp’s leadership, Palantir also reported a record $467.92 million profit—more than double the $217.38 million it posted a year earlier.

Total assets surged 40 percent to $6.34 billion, while total equity climbed from $3.56 billion to $5.1 billion, strengthening the company’s financial position.

Government contracts remained a key driver, with revenue from that segment rising 30 percent to $1.2 billion. Commercial revenue saw even bigger gains, jumping 54 percent to $702 million.