What Happened?
Shares of data analytics company Palantir Technologies (NASDAQ: PLTR) fell 6% in the morning session after a prominent short-seller reiterated its bearish stance on the company, citing significant overvaluation and heavy insider selling.
The downturn was primarily triggered by a renewed warning from short-selling firm Citron Research, which stated the stock's valuation is "super disconnected from its fundamentals" and drew comparisons to the dot-com bubble. This commentary amplified existing investor concerns about the company's high valuation multiples.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Palantir Technologies? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Palantir Technologies’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 6.9% on the news that the company reported record second-quarter revenue and raised its full-year forecast due to surging demand for its AI platform. The data analytics company announced revenue jumped 48% year-over-year to a record $1 billion for the quarter. Adjusted earnings per share also came in ahead of expectations at $0.16. Palantir pointed to strong demand for its artificial intelligence platform as the key driver, noting its U.S. business grew 68% from the year-ago period. This momentum prompted the company to lift its full-year revenue outlook for the second time. The positive report drew praise from analysts, with Wedbush increasing its price target on what it described as "hyper growth demand" for the company's AI suite.
Palantir Technologies is up 111% since the beginning of the year, but at $158.36 per share, it is still trading 15.3% below its 52-week high of $186.97 from August 2025. Investors who bought $1,000 worth of Palantir Technologies’s shares at the IPO in September 2020 would now be looking at an investment worth $16,670.
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