Palantir Shares Sink Following Citron’s Valuation Warning

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August 21st, 2025 -

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Palantir Technologies saw its stock tumble 9% on Tuesday, closing at $157.91. The decline erased a portion of the strong rally the company enjoyed earlier this month after surpassing analyst forecasts and boosting its annual outlook. Tuesday’s drop marked the fifth consecutive session of losses, leaving the stock down roughly 15.5% since August 13.

The selloff followed the release of a new short-seller note from Citron Research, which contended that Palantir’s current price is unsustainably high. Citron drew comparisons to OpenAI’s estimated $500 billion valuation, arguing that if Palantir were measured on a similar price-to-sales multiple, its stock would be valued closer to $40 per share — far below its recent trading levels near $159.

The report reignites a broader debate surrounding Palantir’s role in the AI-driven market boom: are investors pricing in durable growth prospects, or are shares being propped up by speculative enthusiasm?

This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.

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Your capital is at risk when you invest. Never risk more than you can afford to lose. Financial products are complex instruments and come with a high risk of losing money. Click here to view our full Risk Warning.

Your capital is at risk when you invest. Never risk more than you can afford to lose. Financial products are complex instruments and come with a high risk of losing money. Click here to view our full Risk Warning.