African-American Billionaire Alex Karp’s Wealth Dips by $100 Million in Under 3 Weeks

Alex Karp, an African-American tech billionaire, had his fortune increase by $300 million between February 21 and March 13. However, it has now dropped by $100 million, indicating a significant decline just as it was approaching the $3 billion level.

According to Forbes, Karp’s fortune peaked at $2.8 billion on March 13 but has subsequently dropped to $2.7 billion as of writing. The decline corresponds with a recent downgrade of Palantir Technologies (PLTR), the data analytics software company that Karp co-founded.

Last Thursday, an analyst downgraded Palantir, expressing fears that the company’s price is inflated due to investor interest in generative artificial intelligence. Palantir’s stock price plunged following the downgrade.

Karp’s wealth has declined by $100 million, mirroring the recent drop in the share price of Palantir Technologies Inc., the data analytics startup he co-founded in 2003. Karp’s position in the company accounts for 2.63 percent of its outstanding shares.

Since March 13, Palantir’s share price on the Nasdaq Stock Exchange has decreased by 10.2%, from $25 to $22.44. This decrease has brought the company’s market capitalization below $50 billion.

The recent decline in the company’s shares has resulted in a $115.75-million fall in the market value of Karp’s holding over the last 19 days. It fell from $1.45 billion on March 13 to $1.34 billion as of the writing of this report.

Despite a significant decline in wealth, Alex Karp remains one of the world’s Black billionaires. According to Forbes, he is now ranked 1,273rd among the world’s richest people, with an estimated net worth of $2.7 billion.

Brian White, an analyst at Monness, Crespi, Hardt & Co., recently downgraded Palantir’s stock, highlighting the impact of market sentiment on technology valuations. White feels Palantir’s stock is overvalued due to the hype around generative AI. This viewpoint contributed to a significant drop in Palantir’s stock price.

However, there is good news for the company. Palantir recently received a $178.4 million contract from the U.S. Army to build and deploy the TITAN ground station system.

This contract includes ten TITAN prototypes, a combination of sophisticated and basic variations, as well as the integration of new technologies to boost capabilities.

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