African-American tech billionaire Alex Karp’s fortune saw a notable $300 million increase between Feb. 21 and March 13. However, it has since dipped by $100 million, marking a substantial retreat just as it was nearing the $3 billion threshold.
According to Forbes, Karp’s fortune reached $2.8 billion on March 13 but has since declined to $2.7 billion as of this writing. The pullback coincides with a recent downgrade of Palantir Technologies (PLTR), the data analytics software firm Karp co-founded.
An analyst downgraded Palantir last Thursday, citing concerns that the company’s valuation is inflated due to investor excitement surrounding generative artificial intelligence. Palantir’s stock price fell sharply following the downgrade.
Palantir’s stock slide costs Karp $100 million
This $100-million decline in Karp’s wealth, mirrors the recent pullback in the share price of Palantir Technologies Inc., the data analytics firm he co-founded in 2003. Karp’s stake in the company represents 2.63 percent of its outstanding shares.
Since March 13, Palantir’s share price on the Nasdaq Stock Exchange has fallen 10.2 percent, dropping from $25 to $22.44. This decline has pushed the company’s market capitalization below $50 billion.
The recent downturn in the company’s shares has led to a $115.75-million decrease in the market value of Karp’s stake over the past 19 days. It has declined from $1.45 billion on March 13 to $1.34 billion at the time of drafting this report.
Karp holds steady among billionaires
Despite a notable drop in wealth, Alex Karp remains among the world’s Black billionaires. According to Forbes, he currently holds the 1,273rd spot on the list of the world’s richest individuals, with an estimated net worth of $2.7 billion.
The recent downgrade of Palantir’s stock by Brian White, an analyst at Monness, Crespi, Hardt & Co., highlights the sensitivity of tech valuations to investor sentiment. White believes Palantir’s share price is inflated due to excitement surrounding generative AI. This view contributed to a notable decline in Palantir’s stock price.
However, there’s positive news for the company. Last month, Palantir secured a $178.4 million contract with the U.S. Army for the development and deployment of the Tactical Intelligence Targeting Access Node (TITAN) ground station system.
This contract includes 10 TITAN prototypes, with a mix of advanced and basic variants, and involves the integration of new technologies for enhanced capabilities.
