Billionaire Stanley Druckenmiller Sold His Fund's Entire Stake in Palantir and Just Loaded Up on 3 of the Cheapest Members of the "Magnificent Seven"

Core Insights - Duquesne Family Office, led by Stanley Druckenmiller, has sold its entire stake in Palantir Technologies while investing in three other AI-driven companies from the "Magnificent Seven" [2][6][13] Investment Activity - As of mid-2024, Duquesne held nearly 770,000 shares of Palantir, attracted by its unique AI-driven platforms [1] - Druckenmiller's investment strategy has consistently outperformed the S&P 500, managing over $4 billion in assets [2] - The recent 13F filings revealed significant trading activity, including the complete divestment from Palantir [3][4][6] Company Performance - Palantir's Gotham platform supports military operations, while Foundry aids businesses in data analytics [7] - The company has exceeded Wall Street's sales and profit forecasts, with shares increasing over 2,600% since the beginning of 2023 [7] - Despite this growth, Druckenmiller's exit from Palantir suggests a strategic decision beyond mere profit-taking [8] Market Sentiment and Valuation - Concerns exist regarding the sustainability of Palantir's high valuation, with a price-to-sales (P/S) ratio of 114, significantly above the historical average for tech companies [11][17] - The potential for an AI bubble-bursting event could negatively impact Palantir's stock, as history shows early-stage technologies often face such challenges [10] Alternative Investments - Druckenmiller has shifted focus to three AI companies—Amazon, Alphabet, and Meta—that are enhancing their platforms with AI while maintaining more reasonable valuations [13][16] - These companies are valued at forward cash flow multiples of 12 to 18, contrasting sharply with Palantir's nearly 153 forward-year cash flow multiple [16][17]